About Prorating A/R Deposits

Posting Deposits

You can now prorate A/R deposits. Previously when you invoiced the ticket, the system applied the entire deposit amount against the ticket, regardless of the amount billed. Prorating A/R deposits lets you apply a percentage of the deposit amount as a payment against the ticket when it is partially invoiced, rather than the entire deposit amount. The system does this by using a prorated percentage equal to the invoiced amount versus the total amount. For example, if you invoice the ticket only once for 100%, the entire 100% of the paid deposit is applied to the invoice. But if you invoice 50% of the items on the order, the applied deposit is 50% of the initial deposit received. The balance of the deposit is not applied until the remainder of the order is invoiced.

Suppose you create a ticket containing ten items selling for $100 each. The ticket amount is $1000. You post a deposit of $500 to the -0 ticket. You invoice the customer for four of those ten items, totaling 40% of the items on the ticket. The system calculates the amount of the deposit posted to the -0 ticket as follows:

40% of $500 = $200 to be applied to the -0 invoice. The resulting 60% of $500 = $300. The $300 remains in the liability account attached to the base ticket and is applied to ascending tickets, -1, -2, -3, and so on.

If you use this feature, the A/R Deposits dialog box has been enhanced to display the original deposit, the amount applied to each ticket, as well as the remaining amount to be applied. When you print the invoice, the system shows only the deposit amount that was applied, not the entire deposit amount. If you print a Pro Forma invoice, the system prints the total deposit available at the time the Pro Forma is printed. The Deposit Report has also been modified to sort by customer and then order number. This lets you easily see the original -0 ticket information, along with the -1 or -2 tickets that were created.

To use the prorating A/R Deposit feature, you must set the Prorate Deposit Amount Across Dash Numbers field in the (LA5) screen to Y. If you set this field to Y, the system immediately begins prorating invoices when the deposits are invoiced. If you leave this field blank or set it to N, the system continues to apply the full deposit amount when the ticket is invoiced.

Note: When you apply deposits to projects, the project is not affected by this feature, with one exception. If you allocate tickets under the project, the allocated tickets go through the prorated deposit process.