You use this program to define the contract deposit information against the job(s) and sales order(s) that are created when confirming a quotation linked to the contract (see Quotation Confirmation).
Deposits enable you to receive an advance payment from the customer. This deposit is reflected on the customer's account and at the time of billing the customer, billing amounts can be offset against the deposit.
- Projects and Contracts Deposit Creation
- Projects and Contracts Apply Deposit Amount
- GL Integration
- Notes and warnings
| Field | Description |
|---|---|
| Deposit information | |
| Contract | This indicates the contract to which the deposit refers. |
| Job | This indicates the job within the contract to which the deposit is linked |
| Customer | This indicates the customer defined against the contract. |
| Sales order | This indicates the sales order created for the contract. |
| Deposit amount |
This indicates the deposit amount received as a deposit against the contract. This field is only enabled if you defined the deposit as being a value of the selling price against the contract (see Browse on Contracts). |
| Deposit percentage |
This indicates the percentage of the selling price which is used to calculate the deposit amount. This defaults to the deposit percentage entered against the contract (see Browse on Contracts), but can be changed. This field is only enabled if you defined the deposit as being a percentage of the selling price against the contract. |
| Comment |
Enter the notation you want to attach to the miscellaneous sale order line which is created for the deposit. This defaults to the deposit comment entered against the contract, but can be changed. |
| Product class |
Indicate a valid product class for the deposit line on the sales order. This defaults to the product class defined against the contract for the deposit (see Browse on Contracts) but can be changed. The product class defines the General Ledger accounts to which the deposit amount is distributed. A valid product class must be entered. |
| Taxable |
Select this if the deposit is subject to tax. This field is not enabled if the customer is defined as Non taxable (Customers). |
| Tax code |
Indicate the tax code applicable to the deposit. This field is only enabled if you selected the Taxable option. |
| GST taxable |
Select this if the deposit amount is subject to General Sales Tax. This option is only displayed if you selected the setup option: Canadian GST required (Company Tax Options Setup). This field is not enabled if the customer is defined as Non taxable (Customers). |
| GST code |
Indicate the GST tax code applicable to the deposit. |
| Accept |
Select this to accept the deposit information you entered and to add a miscellaneous charge line to the sale order for the deposit amount. The sales order is created by the Part Billings. The sales order is linked to the job created from the Quotation Confirmation program. |
| Cancel | Select this to ignore any information you entered. |
This screen is displayed when you use the Billing Schedule Review program to post a billing schedule or you use the Part Billings program if you have not created schedules.
The deposit amount you apply is added to the sales order as a negative miscellaneous sales order line.
This screen is only displayed if you selected the option: Prompt per schedule against the Deposit method (see Browse on Contracts).
| Field | Description |
|---|---|
| Deposit Information | These fields are displayed for information purposes only, and cannot be changed using this program: |
| Contract | This displays the contract to which the deposit applies. |
| Job | This displays the job within the contract to which the deposit applies. |
| Deposit amount | This displays the deposit amount invoiced. |
| Deposit remaining | This displays the deposit amount which has not yet been offset against a billing. |
| Schedule amount | This displays the amount to be billed for the current schedule. |
| Customer | This displays the customer defined against the contract and the job. |
| Sales order | This displays the sales order created for the job. It is the sales order against which the miscellaneous order line for the deposit amount was created and from which the deposit amount was invoiced |
| Product class | This displays the product class defined for the deposit amount. |
| Amount to apply |
Enter the amount of the deposit you want to use to offset against this schedule. The amount you enter in this field will reduce the value in the Deposit remaining field when next you use the P&C Deposit Creation and Maintenance program. You cannot enter an amount greater than either the billing schedule amount or the Deposit remaining amount. This field is only enabled if you defined the deposit as being a value of the selling price against the contract (see Browse on Contracts). |
| Percentage to apply |
Enter the percentage of the deposit you want to use to offset against this schedule. This field is only enabled if you defined the deposit as being a percentage of the selling price against the contract (see Browse on Contracts). |
| Comment | Enter a comment applicable to the application of the deposit amount to this billing schedule. |
| Apply | Select this to apply the deposit value/percentage entered against this billing schedule. |
| Cancel | Select this to exit the program without applying any deposit amount/percentage to this billing schedule. |
For the transactions relating to the deposit to automatically be recorded in the General Ledger, you need to define a product class for project and contact deposits (see AR Sales Ledger Interface). The ledger account defined against this product class would be a liability account.
![[Note]](images/note.png)
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Product classes cannot be defined only at branch level if you want Projects and Contracts to integrate to the General Ledger. |
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When you use the Sales Order Entry program to invoice the miscellaneous sales order line, the customer's account is debited with the deposit amount.
- If the option: Create GL journal is not enabled for Accounts Receivable (General Ledger Integration), then run the AR Invoice GL Integration program to create the General Ledger journal for transaction.
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If the option: Post GL journal is not enabled for Accounts Receivable (General Ledger Integration), then use the GL Journal Entry program to post the journal into the General Ledger.
- The Debtor's control account in the General ledger is debited with the deposit amount.
- The ledger code defined against the product class for project and contract deposits is credited with the deposit amount.
When you use the AR Payments and Adjustments program to process the customer's payment of the deposit amount, the customer's account is credited with the deposit amount.
- If the option: Create GL journal is not enabled for Accounts Receivable (General Ledger Integration), then run the AR Payments GL Integration program to create the General Ledger journal for transaction.
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If the option: Post GL journal is not enabled for Accounts Receivable (General Ledger Integration) then use the GL Journal Entry program to post the journal into the General Ledger.
- The Bank account is debited with the deposit amount.
- The Debtor's control account in the General ledger is credited with the deposit amount.
When you use the P&C Deposit Creation and Maintenance program to apply all or part of the deposit to a billing schedule and you then use the Sales Order Entry program to invoice the customer for the billing, the customer's account is debited with the billing schedule amount less the applied deposit amount.
- If the option: Create GL journal is not enabled for Accounts Receivable (General Ledger Integration) then run the AR Invoice GL Integration program to create the General Ledger journal for transaction.
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If the option: Post GL journal is not enabled for Accounts Receivable (General Ledger Integration) then use the GL Journal Entry program to post the journal into the General Ledger.
- The ledger code defined against the product class for project and contract deposits is debited. This reduces the deposit liability.
- The Debtor's control account in the General ledger is debited with billing schedule amount less the applied deposit amount.
- The Revenue account in the General Ledger is credited with the full schedule billing amount.
For example:
You have invoiced the customer for 10 000 as a deposit.
Debtors control Dr 10 000
Deposit Liability Cr 10 000
The customer pays the deposit:
Bank Dr 10 000
Debtors control Cr 10 000
You bill the customer 20 000 and apply 2 000 of the deposit to this billing schedule:
Debtors Dr 18 000 (schedule amount of 20 000 less deposit offset (applied) 2 000)
Deposit liability Dr 2 000
Sales Cr 20 000 (full billing schedule amount)
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This program is also run from the Billing Schedule Review program, enabling you to offset all or part of the deposit amount against a billing schedule.
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You can only define deposits against a contract if you process a quotation for the customer using the Quotations program.
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Once a deposit is added against a contract/job, the deposit information cannot be changed.
In addition, you cannot change the sales order charge line created for the deposit.
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If you selected the option: Calculate % per schedule (Browse on Contracts - Deposits), then the P&C Deposit Creation and Maintenance screen is not displayed at the time of confirming the quotation. The system automatically calculates the deposit amount for each schedule at the time of confirming the quotation.
Process a deposit
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Against the contract, you indicate that a deposit is required and you enter the deposit details (see Browse on Contracts).
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Use the Quotations program to create a hierarchical quotation for the contract.
The quotation must be linked to the contract.
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Use the Quotation Confirmation program to confirm the quotation.
Ensure that you select to create a sales order, to create schedules and to create deposits.
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The Quotation Confirmation program calls the P&C Deposit Creation and Maintenance program enabling you to enter the deposit details.
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Use the Sales Order Entry program to invoice the miscellaneous sales order line created for the deposit.
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Use the AR Payments and Adjustments program to receipt the payment of the deposit against the customer's account.
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While the transaction journals are created automatically when you successfully process a transaction, the corresponding General Ledger journal is created and posted according to your selections on the General Ledger Integration form.
- If the option: Create GL journal is not selected for Accounts Receivable (General Ledger Integration) then run the AR Invoice GL Integration and AR Payments GL Integration programs to create the General Ledger journal for transaction.
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If the option: Post GL journal is not selected for Accounts Receivable (General Ledger Integration) then use the GL Journal Entry program to post the journal into the General Ledger.