Deposit for an Inventory 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 Inventory Purchase Order rather than as a Deposit. This process is described under Vendor Invoice for an Inventory Purchase Order.
To record a Vendor Deposit on an Inventory Purchase Order, select Accounting - Bills & Invoices (Vendor Deposits, Invoices, Expenses). Doing so will display the Vendor Deposits, Invoices, and Operating Expenses Window - New Tab.
Click the Add button to display the Vendor Deposit, Invoice, or Expense window.
On the Type menu, select Deposit for an Inventory PO. Doing so will cause the Vendor Deposit, Invoice, or Expense Window to reconfigure properly for the Vendor Deposit information as shown below.
Enter the desired Inventory Purchase Order into the Purchase Order Number (PO #) field. To locate the Purchase Order Number using the Inventory Purchase Order Search Window, click the Search button. Upon entering or selecting the Purchase Order Number, Design Manager will default much of the remaining information on the window as follows:
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. Click OK to save the new Deposit.
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, skip to the section on Printing Checks.
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.