How do I deal with manufacturer deposit contributions?
Summary
This article explains one method for dealing with manufacturer deposit contributions.
The method used is dependent on how the manufacturer requires the amount to be shown on the customer invoice and how they reimburse you for the contribution e.g. payment, credit note with VAT on etc.
The method below is a suggestion for how you can deal with this but for specific advice please consult your manufacturer, accountant or Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page with details of your manufacturer's scheme.
More Information
- Create a non-moving part number, e.g. 'MDC' with a suitable description to suit the manufacturer. It should be:
- Vatable
- Assigned a suitable stock group to indicate the item is a 'Financial' item
- Assigned its own Sales Centre. This must link to a Balance Sheet Asset/Liability centre.
When listing the item as an extra on the unit sales order, the total value, including VAT, should match the manufacturer contribution.
- The quantity should be entered as a minus to reduce the balance owed by the customer.
When you receive the credit note from the manufacturer, it should be posted on the Purchase Ledger.
- You will need to create a Purchase Centre for the contribution which should be linked to the same Balance Sheet code as the Sales Centre has been linked to.
See also
VS84, VS88
