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Best Practices to track Customer Deposit GL account

  • 1.  Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 11:18
    Looking for ideas to track customer deposits GL balance.  Customer uses GL account for deposits, then enters deposit amount in SO deposit field.  Theoretically, if you query (run report) on the SO Header deposits value, this should tie to the GL.  But this method is time sensitive and would not work now to determine deposit detail as of 12/31.  Only method I can think of is to dump the GL detail and eliminate ins/outs.

    What are others doing?

    TIA

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    Jeff Schwenk
    Bottomline Software, Inc.
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  • 2.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 11:45
    Struggling.  That's what others are doing.  I cringe when training a new client if I find out they have deposits.

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    Beth Bowers
    Mom to Peanut, ChiChi, Canton, Cagney and Daisy (I miss you, Sammy)
    Tennessee Software Solutions
    (269) 358-0989
    ------------------------------



  • 3.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 12:25
    You could just create an invoice in AR cash receipts, maybe the date such as 072022.  The system will append the invoice to 072022-PP.  When updated there will be a credit (prepayment) in AR aging.

    ------------------------------
    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Chauffeur, Chef, and Personal Assistant to Sprinkles
    ------------------------------



  • 4.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 12:36
    The bad part of doing that is that it posts to your AR account, and folks with LOTS of deposits usually want to post it to a liability account.

    ------------------------------
    Beth Bowers
    Mom to Peanut, ChiChi, Canton, Cagney and Daisy (I miss you, Sammy)
    Tennessee Software Solutions
    (269) 358-0989
    ------------------------------

    Original Message


  • 5.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 13:18
    If I were an accountant, it would be most important to me to be able to print the detail at a point in time like a trial balance or aging.  For financial reporting they can reclassify the prepayments from AR to Customer Deposits liability at the end of each reporting period having it auto reverse on the first of the subsequent period.

    ------------------------------
    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Chauffeur, Chef, and Personal Assistant to Sprinkles
    ------------------------------

    Original Message


  • 6.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 12:58
    I created a Crystal report pulling from the SO header table for one client.  It pulls just orders where the deposit amount <> 0.

    ------------------------------
    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
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  • 7.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 13:23
    @Mary Jo Krueger  What happens if a sales order with a deposit is partially invoiced / backordered?​

    ------------------------------
    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Chauffeur, Chef, and Personal Assistant to Sprinkles
    ------------------------------

    Original Message


  • 8.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 14:46
    All great work around ideas but all come with a different set of issues.  SO header report is great if there is no need to see it back dated to year end (now mid July).  PrePayment idea works until the customer wants to see the deposit on their invoice.  I use GL posting UDF's to track client profitability information in the GL.  I might look at something similar for client that posts the SO number as a GL detail line UDF.  Extract the deposit account detail posting into Excel than run a pivot table on the UDF.  But this also comes with issues.  If you remember to run the report at the specific time, @Mary Jo Krueger seems to be the cleanest.  Somewhat like running the purchasing clearing report at year end for the auditors.
    ​

    ------------------------------
    Jeff Schwenk
    Bottomline Software, Inc.
    ------------------------------

    Original Message


  • 9.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 16:22
    When you invoice, you enter the amount of the prepayment you want applied to the invoice.  When the invoice is posted, the amount of the prepayment gets updated on the sales order.  The sales order only shows the amount of the prepayment that is still "open."  That's what should match the amount in the prepayment GL account.

    ------------------------------
    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
    ------------------------------

    Original Message


  • 10.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 19:36
    @Mary Jo Krueger  I just tested it and it works great.  My only concern would be the data integrity.  A user could change the deposit amount on the sales order and not make a corresponding cash receipts entry thereby creating a reconciling difference. ​

    ------------------------------
    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Chauffeur, Chef, and Personal Assistant to Sprinkles
    ------------------------------

    Original Message


  • 11.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-20-2022 17:01
    The  only true deposit tracking solution I've seen comes from IIG. It's now part of their credit card processing solution, although they used to sell the deposit tracking portion separately.
    https://www.iigservices.com/_files/ugd/356892_c2cd71150e724278bdd3beda1631588b.pdf

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    Bill Pfahnl
    Nims & Associates
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  • 12.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-21-2022 08:13
    I have been testing this process over the past week.  Enter the sales order with the items.  If they pay a deposit, enter and invoice with 0 on the qty shipped, but add a misc charge line with the deposit amount in negative.  The Sales Order stays as Back Ordered, inventory is not affected and in the ageing you have the balance with the deposit discounted.  Any thoughts of why this wont work????

    ------------------------------
    Lourdes Sobrino
    LU² DSD Puerto Rico
    Guaynabo Puerto Rico
    787.485.9638
    ------------------------------

    Original Message


  • 13.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-21-2022 08:22
    What GL do you post to?

    ------------------------------
    Beth Bowers
    Mom to Peanut, ChiChi, Canton, Cagney and Daisy (I miss you, Sammy)
    Tennessee Software Solutions
    (269) 358-0989
    ------------------------------

    Original Message


  • 14.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-21-2022 08:27
    deposits account for the misc charge....

    ------------------------------
    Lourdes Sobrino
    LU² DSD Puerto Rico
    Guaynabo Puerto Rico
    787.485.9638
    ------------------------------

    Original Message


  • 15.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-21-2022 08:32
    How do you get the cash in the cash account ?

    ------------------------------
    Beth Bowers
    Mom to Peanut, ChiChi, Canton, Cagney and Daisy (I miss you, Sammy)
    Tennessee Software Solutions
    (269) 358-0989
    ------------------------------

    Original Message


  • 16.  RE: Best Practices to track Customer Deposit GL account

    Posted 07-21-2022 08:52
    Let me connect to the customer and look at the configuration we did....will post later...

    ------------------------------
    Lourdes Sobrino
    LU² DSD Puerto Rico
    Guaynabo Puerto Rico
    787.485.9638
    ------------------------------

    Original Message


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