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KLINDH's avatar
KLINDH
Member
6 months ago
Solved

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 deposi...
  • Princess_R's avatar
    Princess_R
    6 months ago

    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

Princess_R's avatar
Princess_R
MYOB Moderator
6 months ago

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

KLINDH's avatar
KLINDH
Member
6 months ago

I haven't yet converted the Purchase Order to a bill. It is still sitting as a Purchase Order with the deposit portion entered and the remaining as outstanding. If I turn it into a bill will the remaining unpaid portion show as being payable? I won't be needing the items for several months so I don't want it to be showing up in my bills payable just yet. How do I turn just the deposit paid portion into a bill so I can allocate the payment to it?

 

Sorry if I am making things confusing. 

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    6 months ago

    Hi KLINDH,

    If you convert the Purchase Order to a bill, only the remaining unpaid portion will show as payable.

    I hope this helps!

    Regards,
    Earl

    • KLINDH's avatar
      KLINDH
      Member
      6 months ago

      Is this the only way to do this? The amount won't be payable for months, but it will be showing up in my bills. The point of paying a deposit is that it is paid, but the remaining amount won't be paid until the actual products are received. It seems silly to have to make it into a bill before you have even received the products. Especially if you don't really even have a date you will receive them.

      • Earl_HD's avatar
        Earl_HD
        MYOB Moderator
        6 months ago

        Hi KLINDH,

        I get why it feels a bit odd to turn a purchase order into a bill when you haven’t even received the products yet. But there’s a good reason for doing it this way. If you go ahead and record a payment directly against a purchase order, you’re locking that payment in—there’s no way to reverse or delete it later if things change.
         

        So instead, the process is to convert the purchase order into a bill first. Once it’s a bill, you can handle the deposit payment separately while keeping the balance open for when the actual goods arrive. You can also visit this help page for more information: Supplier deposits  

        I hope this helps!

        Regards,
        Earl

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