Customer and Supplier Deposits

Q1: What are Deposits and where can I find them?

• Deposits are available under both the Sales and Purchases modules 

• It allows you to manage:

  • Customer Deposits (liabilities) 

  • Supplier Deposits (assets)

• This makes it easier to track advance payments, top-ups, and drawdowns.

Q2: How does Deposits help with my sales/purchase workflows?

• By clearly separating deposit balances and integrating them into payments and invoice workflows, the module ensures accurate liability and asset reporting. 

• It reduces manual tracking, improves audit trails, and provides better control over prepayments and credit usage.

Q3: What are some example activities where I can use this module?

• Here are some common scenarios where Deposits is useful:

  • Prepayments

    • Payments made before goods or services are received.

    • Examples

      • Tour deposits, prepaid medical procedures, software credit top-ups.

  • Security Deposits

    • Funds held to cover potential future obligations or damages.

    • Examples

      • Rental deposits, event space bookings, equipment rentals.

  • Retainers

    • Prepaid fees to retain services over time (common in professional services).

    • Examples

      • Legal retainer, freelance project retainers

  • Deferred Revenue

    • Money received for services not yet rendered.

    • Examples

      • Annual subscription paid upfront, booking fees, class packages.

  • Top-Ups / Recharges

    • Adding funds to a balance account (like digital wallets or service credits).

    • Examples

      • Wallet credits, prepaid internet.

Q4: How do I add or manage deposit accounts for customers/suppliers?

• You can add and manage deposit accounts through the Manage Deposits settings. 

• This lets you define which account to use when tracking deposits for specific contacts. Simply go to Sales/Purchases > Manage Deposits to set up the appropriate accounts.

Q5: What does the “Block Insufficient Payments” setting do?

• Enabling the Block Insufficient Payments setting prevents invoice or bill payments if the customer’s/supplier’s available deposit balance is insufficient for a transaction. 

• This ensures financial accuracy and protects against overdrawn balances.

Q6: How do I manage my Balances?

• The Balances tab shows a summary of all contacts with deposit activity

• You can filter using these sub-tabs

  • All: All contacts with deposit records

  • Balance Available: Contacts with remaining balances

  • Fully Drawn: Contacts whose deposits have been fully used or are overdrawn

Q7: What does Balance Transactions tab do?

• Deposit Transactions tab lists all deposit-related activity

• You can filter using these sub-tabs

  • All: All deposit transactions

  • Deposits: Top-ups, such as cash-ins or invoice-linked/bill-linked deposits

  • Drawdowns: Usage of deposits, like payments applied to invoices or bills

Q8: Can I track deposits in multiple currencies?

• Yes. The Deposits module supports multi-currency deposits, and all balances and transactions will reflect the relevant currency. 

• This is especially useful for businesses dealing with international customers or suppliers.

Q9: How do I reverse a deposit?

• If you recorded an error in the deposit you can reverse it by voiding the related journals/transactions, or reverse it by creating journal entries reversing the error.

Q10: What do I do if a customer cancels their order and requests a refund of the unused deposit?

• Record a drawdown transaction for the refund.

• Optionally issue a credit note or a refund payment, depending on your workflow.