Purchases and "deposit Account"

[Tabletennis1]

We have recently started Adding Purchases into MYOB, and when an amount is paid for an order, it is being allocated out of a Deposit Account (1-700)

From what I can see when I make the payment, it is just coming out of the normal cheque account.

The accountant has asked why it is coming out of a deposit account and how to correct this?

Is this because it is an overseas purchase?

Thank you kindly

[Tracey_H]

Hi @Tabletennis1 

Thanks for your post. Deposits made on supplier orders are treated differently to other payments as no goods have changed hands and a bill hasn't been received.

When a deposit is applied to an order the bank account is credited and will appear as a withdrawal in the Reconcile accounts window. The Supplier deposit asset account is debited as it's not yet considered a payment to the supplier. Recapping (CTRL + R) the order with deposit transaction shows the allocation accounts:

When the order is converted to a bill the deposit is automatically transferred from the Supplier deposit asset account to the Trade debtors account:

Please let me know if you need further help.

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