thanks deeraj[quote]Hi,
Deposits & Guarantees are Commitment Transactions.
Deposits: Invoice is Adjusted against Deposits.
Receipts are applied to Deposits
Credit Memos are applied to Deposits
Deposit Transactions can be adjusted with the future invoices of customers if no receipt has been applied against the deposit.
Deposit Entries:
a. When a deposit transaction is raised
Dr Receivables(Deposit)
Cr Unearned Revenue
b. When Deposit is paid by Customer
Dr Cash/Bank
Cr Receivables(Deposit)
c. When Invoice is raised
Dr Receivables(Invoice)
Cr Revenue
Cr Tax
Cr Freight
d. When invoice Adjustment against Deposit
Dr UnEarned Revenue
Cr Receivables (Invoice)
Guarantees: Guarantee is adjusted against Invoice
Receipts are applied to Invoice
Credit Memos are applied to Invoice
Guarantees Transactions:
a. When a Guarantee is Raised
Dr Un Billed Receivable
Cr Un Earned Revenue
b. When invoice is Generated
Dr Receivables (Invoice)
Cr Revenue
c. When a Guarantee is adjusted to Invoice
Dr Un Earned Revenue
Cr Un Billed Receivables
d. When Payment is received against invoice
Dr Cash/Bank
Cr Receivables(Invoice)
Regards
Dheeraj
<i><div align="right">Originally posted by t_dheerajsingh