About Posting Deposits
You post deposit amounts in the A/R Deposits dialog box. When you enter a deposit, the system views the deposit as a liability. (You hold the amount as a security deposit for the customer’s entire order.) The amount of the deposit only becomes an asset when you invoice the ticket. If you also use the auto apply feature when you post the deposit, the system automatically applies the deposit amount as a payment to the ticket once it’s been invoiced.
Note: To use the A/R Deposits feature, you must first set up a liability G/L account in the Chart of Accounts Master window. This account is used to hold the deposit when it is created. It is moved to an asset account when the ticket is invoiced.
See also:
Understanding How Deposits Affect General Ledger
In the Accounts Receivable Deposits Dialog Box