AR Deposit Setup and Process

Setup:

1. Define a transaction type for deposit with “Deposit” transaction class.

 

 

 

 

 

 

 

 

2. Define a receipt class and payment method to receive deposit transaction. (Optional)

Process:

1. Create AR transaction with deposit transaction type and complete it.
Dr. Receivables
Cr. Offset Account (Deposit Account, a kind of liability account)

2. Create Receipt for deposit.
Dr.  Cash/Bank
Cr. Receivables

3. AR invoice created automatically or manually
Dr.  Receivables
Cr. Revenue

4. Apply Deposit with AR invoice
Dr.  Offset Account
Cr. Receivables

Below is the screen dump to deposit application:

 

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