What is a Customer Deposit?

A Customer Deposit is an advanced payment made by a Customer which can be taken on a Sales Order. It is recorded as a liability and when it is applied to an Invoice the liability is removed.

Here are the statuses for a Customer Deposit:

  • Open: When a deposit is created it is in Open status, meaning none of the amounts has been applied or refunded.
  • Partially Applied: Some of the Deposit’s amount has been applied to an Invoice.
  • Partially Refunded: Some of the Deposit’s amount has been refunded to the Customer and none has been applied to an Invoice.
  • Applied: All of the Deposit’s amount has been applied to Invoice(s).
  • Refunded: All of the Deposit’s amount has been refunded to the Customer.

The Customer Deposite module: 

  • Deposit Date: Select the date of the deposit here.
  • Store: Select the store from where the deposit was made from.
  • Customer: Search and select a customer in this field.
  • Payment Method: Select a payment method.
  • Deposit Amount: Enter the amount of the deposit.
  • Deposit Account: Select the account the deposit is going into. Typically this would be Undeposited Funds.
  • Liability Account: Select the liability account (e.g. Unearned Revenue or Customer Deposits).
  • Sales Order Ref#: Search and select a SO# to attach this Deposit to. If a SO is selected here, then the deposit is eligible for use during Pack & Ship. It is recommended to use this field whenever possible.
  • Link SO Amount: Enter the amount on SO that is to be linked with the Deposit.
  • Exchange Rate: If a foreign customer is selected, you can edit the exchange rate here.
  • Reference Number: Enter a reference number here if necessary.
  • Reference Number 2: Enter another reference number here if necessary.
  • Memo: Enter a memo here if necessary.

Video tutorial:

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