Customer Deposits

1. Go to the Accounts command centre and click Account List.
2. Click the Liability tab then click New.
3. Enter an Account Number suited to your accounts list.
4. Name the account Deposits Collected.
5. Enter the value of your outstanding deposits in the Opening Balance field.
6. Click OK. An example is shown below.
    

Supplier deposits

Use the same steps as described above to set up a separate Deposits Paid ledger account (for deposits with suppliers). This account needs to be set up as an Asset account. Again - this account may already exist in your software and you will only have to enter the Opening Balance against it.

Clearing Account

This account won't already exist in your company file so you'll need to create it. This account will be used for applying the pre-conversion deposits to the customer and supplier orders.

1. Go to the Accounts command centre and click Account List.
2. Click the Asset tab then click New.
3. Select Bank in the Account Type field.
4. Enter an Account Number suited to your accounts list.
5. Name the account Clearing Account.
6. Click OK.

Linked accounts are used by AccountEdge to automate your journal postings. This both saves time and reduces the possibility of errors.

Customer deposits

1. Go to the Setup menu and choose Linked Accounts then choose Sales Accounts.
2. Select the option I track deposits collected from customers.
3. Select the Deposits Collected liability account (created in Task 1 above) in the Liability Account for Customers Deposits field.
4. Click OK.

Supplier deposits

1. Go to the Setup menu and choose Linked Accounts then choose Purchases Accounts.
2. Select the option I track deposits paid to suppliers.
3. Select the Deposits Paid asset account (created in Task 1 above) in the Asset Account for Supplier Deposits field.
4. Click OK.

 Open the Enter Sales or Enter Purchases window and select Order from the type drop down list. Enter the sale/purchase details as required then click Record. Do not enter any amount in the Paid Today field.

Record a general journal entry to transfer the balances from your Deposits Collected and Deposits Paid accounts to the asset Clearing Account created earlier. You will then be able to allocate the deposit amounts to the respective customer and supplier orders.

Here's an example journal entry.

Notes:

• The Deposits Collected liability account is debited for its Opening Balance amount. This will return the account to a zero balance.
• The Deposits Paid asset account is credited for its Opening Balance amount. This will return the account to a zero balance.
• The resulting Clearing Account balance will be the total of the Deposits Collected and Deposits Paid accounts.
• The Conversion Date is used for the Date and

• The N-T Tax/GST Code is used on all line entries.

• return the clearing account to a zero balance
• return the Deposits Collected and Deposits Paid accounts to their original opening balances, and
• update the history in the customer and supplier cards to reflect the deposits paid.

Customer Deposits

1. Go to the Sales command centre and click Receive Payments.
2. Choose the Deposit to Account option and select the Clearing Account in the adjacent Account field.
3. Select the customer card in the Customer field and enter the Conversion Date in the Date field.
4. Enter the deposit amount in the Amount Received field then enter the same amount in Amount Applied field against the Order.
5. Click Record.
6. Repeat steps 2 - 5 for any remaining pre-conversion customer deposits.

The above will debit the Clearing Account and credit the Deposits Collected liability account. The balance of the Clearing account will now be equal to the Deposits Paid.

In our example, the Clearing Account will be debited $1600, leaving it with a debit balance of $1500.

Supplier Deposits

1. Go to the Purchases command centre and click Pay Bills.
2. Choose the Pay From Account option and select the Clearing Account in the adjacent Account field.
3. Select the supplier Card and enter the Conversion Date in the Date field.
4. Enter the deposit amount in the Amount field then enter the same amount in Amount Applied field against the Order.
5. Click Record.
6. Repeat steps 2 - 5 for any remaining pre-conversion supplier deposits.

The above will credit the Clearing Account and debit the Deposits Paid asset account. The balance of the Clearing account should now be zero.

In our example, the Clearing Account will be credited $1500, leaving it with a zero balance.