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
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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