Supplier Deposits
Hi All,
I get a little confused at times recording transactions and wanted some advice about supplier deposits please.
I have made a purchase order and I knew I was going to have to pay a deposit so I recorded the deposit at the time I made the purchase order.
Now the actual payment is showing on my bank feed how do I actually link the two? I tried directly allocating it in the bank feed as a deposit to a supplier however that added the amount again so in the chart of accounts the deposits made amount doubled (If that makes sense).
I had assumed the payment made would automatically link to the deposit amount entered in the Purchase Order. Please help. Thanks
Hi KLINDH,
Sure thing! Let's clear up any questions you might have about supplier deposits. When you're recording one, make sure you pick the right category to track it. You've got two options: either record the deposit while you're making the purchase order or before you switch it to a bill. If the purchase order has already been converted to a bill, that deposit should've been moved to your trade creditors category. For more info, check out this link.
When you see the payment in your bank feeds, don't go straight to allocating it as a supplier deposit again – that'll just double things up. Instead, match that bank feed payment with the existing bill. If you've accidentally ended up with the payment marked as a deposit twice, you'll need to either undo the transaction or make a supplier debit note.
Cheers,
Princess
