3. Apply the deposits to the customer and supplier ordersYou can now apply the deposit amounts to your pre-conversion customer and supplier orders. You'll allocate the deposit amounts from the clearing account, which does the following: - return the clearing account to a zero balance
- return the Deposits Collected and Deposits with Suppliers accounts to their original opening balances, and
- update the history in the customer and supplier cards to reflect the deposits paid.
Customer DepositsRecord the payment through the Receive payments window (Sales > Receive Payments). - Choose the Deposit to Account option and select the Clearing Account in the adjacent field.
- Select the Customer and enter your conversion date in the Date field.
- Enter the deposit amount in the Amount Received field then enter the same amount in the Amount Applied field against the order.
- Click Record.
- Repeat steps 1-4 for each pre-conversion customer deposit.
The above steps 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 with Suppliers. In our example, the Clearing Account will be debited $1,600, leaving it with a debit balance of $1,500. Supplier DepositsRecord the deposit payments through the Pay bills window (Purchases > Pay Bills). - Choose the Pay From Account option and select the Clearing Account in the adjacent field.
- Select the Supplier and enter the conversion date in the Date field.
- Enter the deposit amount in the Amount field then enter the same amount in Amount Applied field against the order.
- Click Record.
- Repeat steps 1-4 for all pre-conversion supplier deposits.
The above steps will credit the Clearing Account and debit the Deposits with Suppliers asset account. The balance of the Clearing Account will now be zero. In our example, the Clearing Account will be credited $1,500, leaving it with a zero balance. |