Hi Friends,
Needed your input to address a process at client site.
We are implementing 11i Financial modules currently at a site.
Our client has a process whereby they receive caution deposit from people and later on refund it (of course, on fulfilling certain criteria). this refund could be after a period of years.
How do you suggest we handle this?
We are implementing AP & AR
Many Thanks,
Sudhir
Query: How to handle caution deposit
Hi
First we need to understand when it is going to be refunded. After certain acitivity is over.
Ex: To day we started one activity it will take one year in this one we are paying amount in the form of invoices final day of this year we are giving last invoice to supplier againt his settlement. After that deposites also will be refunded.
or we can apply the deposits to the last invoice.
Then create one prepayment give as settlement date as last date of the year so you can apply or refunded the prepayment to supplier(Deposit)
We have option in the AR permanant and temporarily deposit. You can use that functionality and proceed.
This is my understanding please let me know do you have any queries or if i am wrong will correct .
Regards,
Anjan
First we need to understand when it is going to be refunded. After certain acitivity is over.
Ex: To day we started one activity it will take one year in this one we are paying amount in the form of invoices final day of this year we are giving last invoice to supplier againt his settlement. After that deposites also will be refunded.
or we can apply the deposits to the last invoice.
Then create one prepayment give as settlement date as last date of the year so you can apply or refunded the prepayment to supplier(Deposit)
We have option in the AR permanant and temporarily deposit. You can use that functionality and proceed.
This is my understanding please let me know do you have any queries or if i am wrong will correct .
Regards,
Anjan
Thanks for the input.
Let me try and explain a little bit on the scenario:
1. The customer pays in a caution deposit before getting a license for construction of a building.
2. Hence we need to maintaine each such person as a customer because the we have received money from him directly in the bank. if we do not maintain a customer database, when the time comes to repay the CD, how do we identify the person?
3. The construction of the building is completed in say 2 years.
4. The inspection is done and the CD is approved to be repaid.
5. The repayment has to be through a bank and hence a cheque has to be drawn in favor of the customer (refund of receipt??)
My guess is:
1. both AR and AP must be used.
2. The party has to be defined as customer (and also as supplier, while making the repayment)
3. DFFs have to be enabled for say building permit number
4. The building permit number will be the invoice number while raising a standard invoice for repayment of the CD.
5. A custom report has to be generated linking AR customer with AP supplier using the building permit as the key
Any suggestions?
TIA
Sudhir
Let me try and explain a little bit on the scenario:
1. The customer pays in a caution deposit before getting a license for construction of a building.
2. Hence we need to maintaine each such person as a customer because the we have received money from him directly in the bank. if we do not maintain a customer database, when the time comes to repay the CD, how do we identify the person?
3. The construction of the building is completed in say 2 years.
4. The inspection is done and the CD is approved to be repaid.
5. The repayment has to be through a bank and hence a cheque has to be drawn in favor of the customer (refund of receipt??)
My guess is:
1. both AR and AP must be used.
2. The party has to be defined as customer (and also as supplier, while making the repayment)
3. DFFs have to be enabled for say building permit number
4. The building permit number will be the invoice number while raising a standard invoice for repayment of the CD.
5. A custom report has to be generated linking AR customer with AP supplier using the building permit as the key
Any suggestions?
TIA
Sudhir
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