myob business software - a client paid a deposit to a sales order created in the last financial year and the balance of the sales order has been paid this financial year - how do you enter these transactions? Please can someone help?
Hi Cheyenne
Firstly, checking how you entered the deposit on the sales order in the prior financial year?
For the sales order in this financial year, have you moved to an invoice and applied the remainder payment?
Regards Chris
Hi Chris, FYI the accountant has not yet done the final bas or EOFY, my first time exposure of MYOB Business (I have Acc/R +) - the client created an invoice and detailed it was a deposit, at first the client put it against sales and I informed them that it has to go to a liability account 'customer deposits', so it was changed to that, but I was not happy with creation of the invoice. I have since forwarded to them the steps to link the deposit account to debtors account so that when the sales order is converted to an invoice, the deposit can be transferred and the balance paid. I hope you agree with these steps. It has been years since I have had any dealings with the inventory side.
Thank you for your time Chris.
Regards Cheyenne
Hi Cheyenne
The initial deposit to sales order might be best to be allocated to the customer deposits liability account and then when moved to an invoice, add a line to remove deposit from liability account
ie Sale
Sales $1000 income acc
Dep $-200 liability acc
total $800 to be paid by customer
this should clear the initial deposit to the liability account
Hi Chris,
Apologies for not getting back sooner- Thank you Chris for the information, I will pass this on when speaking to the client. BTW, the last reply from myself - 'link the deposit account to debtors account' should this still be necessary since your suggestion about adding the line in the invoice to reduce the total?
Thanks
Hi
Its always recommended not to post directly to a linked account, like Debtors or Creditors
Better to post the original deposit to customer deposits and move the deposit to the invoice when raised.
Thanks
Thanks Chris, I am asking about in MYOB Business when you go into 'Accounting - manage linked categories' under 'Sales' it asks you to tick 'I track deposits collected from customers' and you place an account 'Customer Deposits' - is there any point in ticking this when the sales order is converted into an invoice you place a line in to acknowledge the deposit and the corresponding customer deposit account to show the reduction of total owing.
Thank you for your time.
