Deposit From a Recorded Sale

How are deposits recorded and why do they prevent the deletion of Invoices and Bills?

Issue is: unable to delete payment

Payments applied to Orders are automatically recorded and posted as deposits. Although these deposits are individual transactions, they become associated with the Invoices and Bills that are converted from Orders. This association prevents the Invoices and Bills from being deleted if the sale or purchase is canceled. This association also prevents the deposit transaction from being deleted.

Invoices and Bills quite often originate from Orders that have had deposits applied to them. For Sales, when a payment is applied to an Order, the allocation account is a liability account, named something such as Customer Deposits. For Purchases, when a payment is applied to an Order, the allocation account is an asset account named something such as, Deposits Paid. (In both cases, the allocation is determined in Linked Accounts.) When these Orders are converted to Invoices, users will see Journal Entries indicating Transfer From Deposit.

This support note includes information on how these deposits are refunded when the sale or purchase is cancelled.

How do I know if an Invoice or Bill has had a deposit applied?

The following alert is displayed when trying to delete an Invoice or Bill that has a deposit applied to it:

  • A sale with payments applied may not be deleted
  • A purchase with payments applied may not be deleted

Attempting to delete or reverse the payment will result in one of the alerts:

  • You may not delete a deposit transaction for a recorded sale
  • You may not reverse a deposit transaction for a recorded sale
  • You may not delete a deposit transaction for a recorded purchase
  • You may not reverse a deposit transaction for a recorded purchase

How do I cancel an Invoice or Bill that has had a deposit applied to it?

There are several steps involved in canceling these Invoices and Bills. The process includes clearing the Invoice/Bill, issuing a refund for the deposit amount to the customer or supplier and then recreating the Invoice/Bill as necessary.

METHOD
Step 1 - Find the Invoice/Bill

Invoices

  • Find the invoice in the Sales Register, or
  • Click Sales then Find Transactions
  • Click the Search By field drop down arrow and select Invoice #. Then, click on the adjacent field's drop down arrow and select the Invoice/Bill to which the deposit has been applied

Bills

  • Find the bill in the Purchases Register, or
  • Click Purchases then Find Transactions
  • Click the Search By field drop down arrow and select PO # or Supplier Invoice #. Then, click the adjacent field's drop down arrow and select the Bill with the applied deposit

Step 2 - Clear the Invoice/Bill

NOTE: If you have an invoice or bill with a lot of information you may want to save this as a Recurring Transaction so that you don't have to re-type everything. To do this click the Cog-Wheel/Action menu in the bottom right of the Invoice/Bill and choose to "Save as Recurring." Set the transaction frequency as "Never."

  • Click the zoom arrow next to the Invoice/Bill
  • Right-Click or Control-Click on the line item and choose to "Delete Line." Do this for every line on the invoice and also make sure to remove any amount from the Freight.
  • Click "OK" to record the invoice. It will tell you the sale has very little information. Hit OK.
  • This will result in one credit memo

Step 3 - Pay Back the Credit

  • From the Command Center, click Sales then Sales Register and click the Returns & Credits tab
  • Highlight the reversed Invoice and Click Pay Refund
  • Make sure to choose the correct account to pay the refund out of (you can find this above the check), if you would like to override the check number you can use something like "credit" instead, make sure the payment method is check. Click Record.

Step 4 - Recreate the Invoice/Bill as Necessary

Recreate the invoice/bill and apply the payment as needed. If you save this as a recurring transaction you can go to Enter Sales/Enter Purchases and click the Cog-Wheel/Action menu in the lower right and choose to "Use Recurring Sale/Purchase" - find the correct transaction from your list and double click on it.