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Greg Kraushaar
08-07-2001, 09:34 PM
My problem is how to record the down payment & final(2nd) payment via check in Sales/Invoicing. It appears Peachtree is set up as a 1 payment system. Do I overwrite the 1st check info with the seconds info? Then the 1 payment info is lost.
Second, the Bank deposit report is not right.
My work around has been to do invoice 2345, then 2345a.
Any help is appreciated.

Lamar
08-09-2001, 10:01 AM
Here's the way we handle downpayments (we call them deposits, but it's the same difference).

From an accounting stand point one has to remember that a deposit is a liability. If the order is cancelled then those funds would be returned. Even if there is some penalty imposed for the cancellation, that can be taken care of when that happens.

So, first we established a liability account called deposits (call it what you will). We invoice the customer for the deposit. We created an Item (Non-Stock) called Deposit. It automatically uses the GL account created called Deposits and a tax code with no sales tax. So the invoice line has the following:

Qty = 1
Item = Deposit
Desc = Deposit Received/-Applied
Amount = $100.00

The GL account used is the deposits account as opposed to sales account. Then the receipt of payment is posted just like any other invoice due. Depending on the nature of your business you may even want to give a copy of this invoice to the customer as a receipt.

Then, on the invoice where the goods/services are actually delivered, we place a line item as follows:

Qty = 1
Item = Deposit
Desc = Deposit Received/-Applied
Amount = $-100.00

This shows an invoice with 100% of the goods/services sold (and all applicable sales taxes applied at the time of sale) and applies the deposit made when the order was received. The balance due reflects the exact amount needed to complete the sale.

This can be done on the Sales Order as well so the amount of deposit is already reflected and flows right into the invoice. We do this so we don't forget to issue the credit for the deposit!

Works nice for us. I hope this helps you. Hollar if I left anything vague.

Lamar
:)