Difference between revisions of "How do I account for retained deposits?"

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== Summary ==
 
== Summary ==
 
The following article explains how to deal with any retained deposits for unit sales orders that have fallen through and for which you are keeping the deposit.
 
The following article explains how to deal with any retained deposits for unit sales orders that have fallen through and for which you are keeping the deposit.
  
 
== More Information ==
 
== More Information ==
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The law has now changed and you must account for V.A.T. on retained deposits.
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As of April 2019 the law has now changed and you must account for V.A.T. on retained deposits.
  
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To do this please raise a manual invoice for the full deposit amount including VAT. Mark the invoice as paid using the deposit as payment. You may need to create a [[How do I create a sales or purchase centre?|sales centre]] to account for the nett amount or use an existing centre such as New Unit Sales. Seek advise from your accountant if you are unsure how to proceed.
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To do this please raise a [[How do I produce a text invoice in Platinum?|manual invoice]] for the full deposit amount including VAT.
  
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** This article refers to the situation prior to April 2019 **.
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* You may need to create a [[How do I create a sales or purchase centre?|Sales centre]] and link it to a [[How do I create a nominal code?|Nominal centre]] to account for the nett amount. Or you may wish to use an existing centre such as New or Used Unit Sales.
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* Seek advice from your accountant if you are unsure how to proceed.
  
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Since no taxable sale has taken place and the contract has been broken, you should not need to account for any V.A.T. on this money, but you should check with HMRC or your local tax authorities to establish the correct procedure.
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* Using Sales Ledger Receipts allocate the deposit to the invoice you have created. See [[How do I allocate a payment to an invoice?]].
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{{Note|text=Once you have [[How do I refund a unit deposit?|cancelled the sales order and chosen not to refund the deposit]], the amount held on the customer's account will need to be paid off to a relevant nominal centre using {{Menu|{{SL}}|Receipts}}.}}
 
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Go to {{Menu|{{SL}}|Receipts}}.
 
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* At {{DataPrompt|Customer:}} type in the Customer's account code if known, or [[How do I find a customer?|search]] for a Customer.
 
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* Select the document that you wish to clear.
 
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* Press {{KeyPress|F}} and {{KeyPress|ENTER}} to pay the amount in full.
 
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* Press {{KeyPress|ESC}} to enter the payment details.
 
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* Enter an applicable comment e.g. {{DataValue|Deposit Kept}}.
 
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* In the {{DataPrompt|Centre}}, enter an appropriate Nominal Centre code, or [[How do I create a nominal code?|create one]].
 
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* If you do create one, ensure that it is on the 'profit and loss' as Sales.
 
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* Press {{KeyPress|ESC}}.
 
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* Choose {{Button|Accept}} to post the payment.
 
  
 
== See also ==
 
== See also ==
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* [[How do I refund a unit deposit?]]
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* [[How do I create a sales or purchase centre?]]
 
* [[How do I create a nominal code?]]
 
* [[How do I create a nominal code?]]
 
* [[How do I find a customer?]]
 
* [[How do I find a customer?]]
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* [[How do I produce a text invoice in Platinum?]]
  
 
{{KB_Tags|deposit, kept, retained, keep deposit, cancel order}}
 
{{KB_Tags|deposit, kept, retained, keep deposit, cancel order}}
 
{{How}}{{KB_NL}}{{ZN_Accounts}}{{ZN_Admin}}{{ZN_PartsCounter}}{{ZN_WorkshopManager}}
 
{{How}}{{KB_NL}}{{ZN_Accounts}}{{ZN_Admin}}{{ZN_PartsCounter}}{{ZN_WorkshopManager}}

Latest revision as of 06:29, 11 December 2020

Summary

The following article explains how to deal with any retained deposits for unit sales orders that have fallen through and for which you are keeping the deposit.

More Information

As of April 2019 the law has now changed and you must account for V.A.T. on retained deposits.

To do this please raise a manual invoice for the full deposit amount including VAT.

  • You may need to create a Sales centre and link it to a Nominal centre to account for the nett amount. Or you may wish to use an existing centre such as New or Used Unit Sales.
  • Seek advice from your accountant if you are unsure how to proceed.

See also


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Keywords AND Misspellings
deposit, kept, retained, keep deposit, cancel order
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