How do I account for retained deposits?
From Catalyst
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.
- Using Sales Ledger Receipts allocate the deposit to the invoice you have created. See How do I allocate a payment to an invoice?.
See also
- How do I create a sales or purchase centre?
- How do I create a nominal code?
- How do I find a customer?
- How do I produce a text invoice in Platinum?
