Deposit on Project Purchase Order

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A Vendor Deposit is an initial payment required by the Vendor to accompany the Purchase Order  in order for the Vendor to begin processing the order.  Deposits are normally less than 100% of the cost of the merchandise being ordered.  If 100% of the merchandise is being requested, it is suggested that the payable be recorded as a Vendor Invoice on the Project Purchase Order rather than as a Deposit.  This process is described under Vendor Invoice for a Project Purchase Order.

 

To record a Vendor Deposit on a Project Purchase Order:

 

1. Select Accounting - Bills and Invoices (Vendor Deposits, Invoices, Expenses).  Doing so will display the Vendor Deposits, Invoices, and Operating Expenses Window - New Tab

 

vendor dep_invoices window-new

 

2. Click the Add button to display the Vendor Deposit, Invoice, or Operating Expense window.

 

vendor dep_invoices window-add new

 

3. On the Type menu, select Deposit for a Project PO.  Doing so will cause the Vendor Deposit, Invoice, or Expense Window to reconfigure properly for the Vendor Deposit information as shown below.

 

vendor dep_invoices window-add new depos proj po

 

Purchase Order Number (PO#): The Purchase Order Number for which the Deposit is being sent.

 

Pay With: The Pay With selection allows the user to choose the method of payment for the Vendor Deposit, either by Check/Wire Transfer or a Credit Card.  The "A Check" will be the only selection that can be made until a Credit Card Account has been defined in the Accounts Glossary or additional Accounts Payable Payment Type has been created.  For more information on defining Credit Cards in Design Manager, see Paying a Vendor with a Credit Card while adding additional A/P Payment Types is described in under Accounts Payable Payment Types and the Company Information Window - A/P Payment Types.

 

Vendor: The Vendor Code to which the Deposit is being sent.  The Vendor Name will be displayed upon entering or selecting a valid Vendor Code.

 

Invoice Date (Inv. Date): The Invoice Date is used to record the date that the Deposit is being issued and defaults to the Ordered Date of the Project Purchase Order.

 

Due Date: The Due Date is the date by which the Deposit check needs to be sent to the Vendor and is often the same as the Invoice Date.  The Due Date defaults to the Ordered Date of the Project Purchase Order but can be changed.

 

Transaction Description (Trans. Desc.): This is an optional field which allows the user to enter a brief description of the Deposit transaction.

 

Amount: Input the proper amount of the Deposit.  The Amount will default to the total Requested Deposit of the Project Purchase Order.

 

Notes:  Any internal information regarding the Deposit can be entered in the Notes field.  The Notes will be displayed on the Existing Vendor Payables Grid of the Vendor Deposits, Invoices, and Operating Expenses Window - Existing Tab and certain Accounts Payable reports.

 

Hand Check/Wire Transfer (Hand Chk / Wire Trans): If a hand written check, wire transfer, or debit card is used to pay the Vendor Deposit, click this button to open the Hand Check / Wire Transfer Window.  The Hand Check / Wire Transfer Window allows the user to enter a Check Number, or automatically create a Wire Transfer Number, and date to record the payment in the Checkbook.

 

 

4. Insure that the Amount is correct and make changes as needed.  For example, the Vendor can be changed if the Deposit is going to Product Representative.  Choose the proper method to pay the invoice in the Pay With menu.  The Pay With menu option will default to the first Accounts Payable Payment Type which is most commonly “A Check”.  To choose to pay with a Credit Card, select the desired Credit Card from the menu.  For more information on using a credit card to pay your Vendor, see Paying a Vendor with a Credit Card.  To learn more about creating and using Accounts Payable Payment Types, see Accounts Payable Payment Types and the Company Information Window - A/P Payment  Tab.

 

If paying with a hand written check or a wire transfer/debit card, click on the Hand Check Wire Transfer (Hand Chk Wire Trans) button to enter the check/transfer information.  If a check is going to be physically printed on the printer, do not click the Hand Check Wire Transfer Button.

 

5. Once the information is entered, Click OK to save the new Deposit.

 

6. The Deposit will now appear on the New Vendor Payables Grid on the New Tab of the Vendor Deposits, Invoices, and Operating Expenses Window. The Deposit can be edited or removed at this point by clicking the Edit and Delete buttons, respectively.  To record the Deposit for the Project Purchase Order, click the Post button.

 

If a Check needs to be printed through Design Manager, continue on to the section on Printing Checks.

 

If Vendor Deposits need to be created for multiple Project Purchase Orders, it may be convenient to use the Quick Add Vendor Deposits Window which is described in detail under Automatically Generating Vendor Deposits and the Quick Add Vendor Deposits Window.

Accounting:  Upon posting a Vendor Deposit, Design Manager will credit the Accounts Payable Account and debit the Vendor Deposit Account.  The Vendor Deposit will remain on Accounts Payable until a Check or other form of payment is applied to the Deposit.  If the Hand Check Wire Transfer button was used, then Design Manager will further debit the Accounts Payable Account and credit the designated Cash Account.  If the Deposit is being paid with a Credit Card, the Credit Card Liability Account, rather than Accounts Payable, will be credited.