How to enter Deposit payment

Learn how to enter Deposit payments for Lease Contracts in Cash Receipt, General or Payment Journals, return them with a refund and apply them to Sales Invoices.

Table of Contents

When to use this Scenario 1. Enter Deposit payment Use case: Note: Scenario 2. Apply Deposit payment to a Sales Invoice Use case: Note: Scenario 3. Apply Deposit payment to a Posted Sales Invoice in General Journals Use case:

Deposit payments are linked to a Lease Contract with the Lease Contract No. and Posting Group fields on the journal line. Posted Deposit payments are shown in the Actual Deposit Amount field on the Lease Contract. A posted Deposit payment can also be applied to a Sales Invoice when the invoice is posted.

When to use this

  • The tenant pays the deposit according to the Lease Contract conditions.
  • The deposit (or part of it) has to cover a posted Sales Invoice, e.g. the last month's rent.

Scenario 1. Enter Deposit payment

Deposit payments can be entered in any of these journals:

  • Cash Receipt Journals
  • General Journals
  • Payment Journals

The steps are the same in all journals. The deposit is linked to the Lease Contract by the Lease Contract No. and Posting Group fields on the journal line.

Use case:

Enter a Deposit payment of 3.000 for Lease Contract No. LC00001.

To enter a Deposit payment:

  1. Open Cash Receipt Journals, General Journals or Payment Journals by search.
  2. Start a new line and fill in the payment data.
  3. Enter the Lease Contract No. and the Posting Group for the deposit.
  4. Post the journal line.

The system posts the journal lines and shows a confirmation message.

To check if the Deposit payment was entered correctly, open the Lease Contract. The Actual Deposit Amount field has to show the amount of the Deposit payment posted in the journal.

Note:

To return a Deposit payment, enter an opposite entry in the journal with the Document Type Refund and the same Lease Contract No. and Posting Group. The refund can be applied to the original Deposit payment directly in the journal. After posting, the refunded amount is removed from the Actual Deposit Amount on the Lease Contract.

Scenario 2. Apply Deposit payment to a Sales Invoice

Use the Applies-to Doc. Type and Applies-to Doc. No. fields on the Sales Invoice to cover the invoice with a posted Deposit payment. The application is made automatically when the invoice is posted, so there is no need to apply the entries manually in Customer Ledger Entries.

Use case:

The tenant of Lease Contract LC00030 has paid a deposit of 3.000. The last month's rent invoice of 1.000 has to be covered by the deposit.

To apply a Deposit payment to a Sales Invoice:

  1. Open the Sales Invoice.
  2. In the General section, select Payment in the Applies-to Doc. Type field.
  3. In the Applies-to Doc. No. field, select the document number of the posted Deposit payment.
  4. Post the Sales Invoice.

The invoice and the Deposit payment are applied in Customer Ledger Entries. If the deposit is larger than the invoice, the rest of the deposit stays open.

Note:

  • The Deposit payment can be applied even if a Deposit Posting Group is set in Real Estate Setup and the Sales Invoice has a different Customer Posting Group.
  • After the application, the Actual Deposit Amount on the Lease Contract and the Lease Deposit report still show the full deposit amount.

Scenario 3. Apply Deposit payment to a Posted Sales Invoice in General Journals

A Deposit payment can also be applied to a posted Sales Invoice in General Journals. To do this, create two journal lines that balance each other:

  • The first line removes the deposit amount from the Lease Contract. Enter the Lease Contract No. and Posting Group on this line and apply it to the original Deposit payment. After posting, the amount is removed from the Actual Deposit Amount on the Lease Contract.
  • The second line enters the same deposit amount again as a regular payment. Leave the Lease Contract No. and Posting Group empty and apply this line to the posted Sales Invoice, e.g. the last issued one.

Use case:

The tenant (customer C00060) of Lease Contract LC00010 has paid a deposit of 1.000. The deposit has to cover the last issued Sales Invoice of 1.000.

To apply a Deposit payment to a posted Sales Invoice in General Journals:

  1. Open General Journals by search.
  2. Enter two lines with the same Posting Date, Document No., Account Type Customer and Account No., see the example below. Leave the Document Type blank on both lines. On the first line, enter a positive amount and the Lease Contract No. and Posting Group. On the second line, enter the same amount with a minus sign.
  1. In the Applies-to Doc. No. field, select the original Deposit payment on the first line and the posted Sales Invoice on the second line.
  1. Post the journal lines.

You can also post the journal lines first and apply the entries afterwards in Customer Ledger Entries.