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https://help.myob.com/wiki/x/6Ae0Aw
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A supplier deposit is a payment for goods or services that you haven't been billed for yet. This means if you make a payment against a purchase order, it's considered a deposit.
Once a purchase order is converted to a bill, payments you apply are just like regular supplier payments.
If you want to be able to apply deposits to purchase orders, you'll need to activate an MYOB preference. You'll also need to specify the asset account you want to use to track your supplier deposits.
Why am I doing this?
From an accounting perspective, deposits are different to other supplier payments because you haven't been billed for the goods or services you've ordered. To account for this in MYOB, supplier deposits are posted to an asset account. When you're billed for the things you've ordered and you convert the purchase order into a bill, the deposit is transferred to your trade creditors account.
Activating the supplier deposit preference and specifying an asset account ensures this process happens behind the scenes.
- Go to the Accounting menu and choose Manage linked accounts.
- Click the Purchases tab.
- Select the option I track deposits paid to suppliers.
- Choose the Asset account for supplier deposits. If needed, you can create a new account for this purpose. Check with your accounting advisor if you're unsure.
- Click Save.
You can record a supplier deposit:
- When creating a purchase order, enter the deposit amount in the Amount paid ($) field.
- After you've saved a purchase order, and before it's converted to a bill, apply the deposit in a similar way to other supplier payments:
- Go to the to Purchases menu and choose Create supplier payment.
- Select the option Show purchase orders.
- Enter the deposit amount against the applicable purchase order.
- Click Save.
How you delete a deposit depends on the purchase order.
- From the Purchases menu, choose Purchase orders.
- Click the purchase order which has the payment you want to delete. If needed, use the filters at the top to help find the order.
- In the Activity history at the bottom of the bill, click the reference number for the payment to be deleted.
- Click Delete.
- At the confirmation, click Delete.
A common scenario is where a purchase order is created and a full or partial payment (deposit) is applied. Then, the order is converted to a bill but is subsequently cancelled.
Because of the way deposits are treated from an accounting perspective, you can't simply delete a deposit. Instead, you'll first need to "undo" the bill by creating a supplier credit for the bill amount then settling that credit.
This ensures:
- the deposit can be refunded or forfeited
- there's an audit trail of what happened
- your MYOB account balances will be correct
- your GST reporting will be correct.
If you need to delete a deposit because the wrong amount has been applied, after completing the tasks below you'll need to create a new purchase order and apply the correct deposit amount.
1. Create a supplier credit for the bill amount
By creating a supplier credit (sometimes called a debit note or supplier return) for the bill amount, you'll be able to apply that credit to the bill—effectively undoing the original bill.
- From the Purchases menu, click Create bill.
Choose the same Supplier as the original bill.
- Select whether the amounts in the original bill were Tax inclusive or Tax exclusive.
- Enter a Description of what's being credited, for example "Supplier credit to reverse bill 000123".
- Select the same Account as the original bill.
For the Amount, enter the amount of the original bill as a negative number. For example, if the original bill was $100, enter -100.00
- Click Save.
Now, based on whether or not you're being refunded the deposit, you can settle this supplier credit against the original bill. See below for details.
Settle the credit (if the deposit is being refunded)
You can use the supplier credit you've created to:
- settle the outstanding balance of the original bill (minus the deposit amount), and
- record the deposit refund.
Here's how:
- Go to the Purchases menu and choose Supplier returns.
Choose the Supplier you created the credit for.
Click Apply next to the credit to be settled.
<pic>- In the list of displayed bills, find the original bill. The outstanding balance will be the amount of the original purchase order minus the deposit.
- In the Amount applied field for the original bill, enter the amount left owing on the bill.
<pic> - Click Record. This settles (closes) the bill and leaves a credit balance equal to the value of the deposit.
- Click Refund next to the remaining credit amount.
<pic> - Select the Bank account the refund is being paid into.
- Click Record. This refunds the deposit and settles the remaining balance of the supplier credit.
Settle the credit (if the deposit is not being refunded)
If the deposit is non-refundable, you need to:
- create a bill for the deposit amount (to account for the payment of this money to the supplier), then
- apply the supplier credit you've created to:
- close the deposit bill, and
- settle the outstanding balance of the original bill (minus the deposit amount)
Here's how:
Create a bill for the deposit amount
Record a new bill (need a refresher?) and use the following details:
- Choose the same Supplier as the original bill.
- If your business operates on a GST accrual basis, make sure the Date is in the correct reporting period.
- Use the Services field layout
- Enter a Description which describes the transaction, such as Non-refundable deposit for order XXXX
- For the Account, choose ????
- For the Amount, enter the deposit amount.
Apply the supplier credit
- Go to the Purchases menu and choose Supplier returns.
Choose the Supplier you created the credit for.
Click Apply next to the credit to be settled.
<pic>- In the list of displayed bills, find the bill you just created for the deposit amount.
- In the Amount applied field for the deposit bill, enter the amount of the bill.
<pic> - Click Record. This settles the deposit component of the transaction which is now considered a payment to the supplier.
- Click Apply next to the remaining credit amount.
- In the list of displayed bills, find the original bill. The outstanding balance will be the amount of the original purchase order minus the deposit.
- In the Amount applied field for the original bill, enter the amount left owing on the bill.
<pic> - Click Record. The remaining credit is applied and the original bill is closed.
FAQs
What is a 'Transfer from deposits' transaction?
When a deposit is paid for a purchase order, the deposit amount is typically posted to an asset account. When the purchase order is converted to a bill, MYOB needs to transfer the deposit amount from the applicable account and post it to your trade creditors account. This will appear in your transaction journal as a Transfer from deposits.
This example shows what a $100 deposit looks like on the Find transactions page after the order has been converted to a bill:
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