Refundable Deposits in AR

[rihan m]

Hi All,

Customer pays a deposit and registers his sales order. The sales order could or could not be converted to a actual sales. If an invoice is raised the deposit will be applied and if an invoice is not raised the whole deposit will have to be refunded.

I thought the best way to handle the above is through the Deposit function within AR. Initially a receipt would be raised

DR Cash 5000.00
CR Receipt In Advance 5000.00

And a Deposit

DR Receivable 5000.00
CR Deposit Refundable 5000.00

I applied the receipt to the Deposit.


DR Reeceipt in Advance 5000.00
CR Receivables 5000.00


But the issue is when an invoice is raised for a lower amount, say for 3500.00

DR Receivable 3500.00
CR Revenue 3500.00

And Apply the deposit (Will be partially applied)

DR Deposit Refundable 3500.00
CR Receivable 3500.00


Ultimately all receipt , deposit and invoice will show 0s. But when u run the commitment balance report , it will show the 1500.00 as outstanding deposits. How can I clear this figure as anyway I will be rosining an Invoice (AP) debiting Deposit Refundable account and pay. Ultimately deposit account (GL account) will show the correct figure.


Please help me out in clearing the commitment balance report
Else suggest me a better idea to handle the above scenario..

Leaving for u all experts[:)]


Thanks,
Rihan

[rasinti]

Dear Rihan,

Please use Prepayment sales order functionality for this issue.
While creating an order it self you can create a prepayemnt receipt in OM.This receipt will create throgh API as per standard functionality .Once your order is ship confirmed status then the invoice will come to AR. After that run a Prepayment matching progarm in AR then syste will apply rceeipt to Transaction automatically.

I hope this will help to you

Regards,
Rasinti

[rihan m]

Hi Rasinti,

Thanks for ur reply,

But in my case , the client doesnt have Oracle OM installed. Sales orders are captured in a 3rd Party Front End application.

Is there a way for us to handle this within AP / AR?

Thnx,
Rihan

[tgs100]

Try the below one.

1. Create a dummy invoice for the same customer with revenue account as Deposit Refund Account.
Receivable- Dr - 1500
To Deposit Refund Account - 1500

2. Apply the invoice against the deposit trx.
Deposit Refund Account (from Deposit) - Dr - 1500
To Receivable - 1500

3. Create a Payable Invoice with debit account as Deposit Refund Account.

Cheers,
Saravanan TG