A vendor deposit allows payment to a vendor before the final due date, before work has begun, or before product has shipped.  Note: in these instances, because we are paying the vendor earlier than is required, it is considered a deposit, which is an ‘asset account.’

A Vendor Deposit may be linked directly to a Purchase Order (PO), or not.

Vendor Deposit linked directly to a PO:

1. Confirm that a vendor account exists:
   1. Accounting menu > Admin > Company Setup
   2. Search for your company
   3. On Asset tab, make sure there is an account in the field titled Vendor Deposit Account (if this is not the case, a vendor account must be created before proceeding).
2. Access Customer Record > PO tab.
3. Create a purchase order by clicking the Add button.
4. Add “miscellaneous” line items.
5. Click Add to PO button.
6. Change Cost in Cost column.
7. Confirm and Approve the purchase order and then send to vendor.
8. If vendor requires a “deposit,” on the Extended Menu of the purchase order, click Create a Vendor Deposit.
9. Enter the deposit amount and click Ok.
10. A new vendor invoice (a Voucher) will be created, for the amount of the deposit. Invoice Type will be DEPOSIT and the deposit will appear in the Line Item Summary grid on the Voucher form.
11. On the Line Items tab, Details subtab, notice the GL account chosen in the company setup CANNOT be edited, but the cost may still be edited at this point.
12. Save the vendor invoice.
13. From the Extended Menu of the Voucher, click Post and Release for Payment (on the purchase order, the amount of the deposit will now be listed in the Deposit Paid field).
14. From the Extended Menu of the Voucher, click Post Direct Payment. A Direct Payment Comments window will open.  Edit payment date, amount, reference number and add payment type.
15. Click Post Payment.
16. On purchase order, click process button and then Receive PO on the Process window that appears.
17. Choose item to receive (change quantity in Q/Rec column).
18. Click save, and on the confirmation window that appears, click Yes.
19. On the next confirmation window that appears, click No (Print labels for received items?).
20. From Extended Menu of purchase order, Create Vendor Voucher.
21. Items to Voucher window will open. Select item (Misc) and click Save button.
22. A vendor voucher for the misc expense will open. From the Extended Menu, click Post Voucher and Release for Payment.  The confirmation window that appears will display the vendor deposit balance available and ask you to confirm that you wish to apply this deposit against this voucher.  Click Yes.  The AP Journal tab of the voucher (now posted) will display all the entries.

Create a Vendor Deposit without a PO:

1. On Vouchers tab of a Customer form, click Add button. From drop down menu, select Create Vendor Deposit.
2. An Enter a Value window will appear. Enter the amount of the vendor deposit and click Ok.  A new Voucher of invoice type DEPOSIT will be created.
3. From the Extended Menu of the Voucher, select Post Voucher and Release for Payment.
4. From the Extended Menu of the Voucher, select Apply Deposit.
5. A Select a Voucher window will appear listing all outstanding vouchers available for this customer. Select the correct voucher and click the Select button.
6. The AP Journal tab of the voucher (now posted) will display all the financial entries.

Note: Vendor Deposit Sub-ledger (Q0335) has been added to the month-end reconciliation screen.

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Vendor Deposit

Create a Customer Deposit on a Box Sale:

It may sometimes be necessary to create a customer deposit for a “box sale” – an order not on a project.  In these instances, you may:

1. Add to the order a positive line and a negative line for the offset
2. Both lines should post to a “customer deposit” balance sheet account