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HOw to clear a depost from ser
October 26, 2020
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clearing non refundable customers' deposits

  • October 26, 2020
  • 2 replies
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What do I do with a customers' non refundable deposit from last year.  We have some customers who made a deposit for a purchase,  but did not follow through with the purchase. A agreement was sign that the deposit is non refundable.  How to I remove them for the customer account so it does not show as  a credit on their account?

Best answer by BigRedConsulting

It sounds like you received a customer pre-payment and recorded it using the receive Payment feature and it remains unapplied, not paying down an invoice.

 

If so, that prepayment was not recognized as income at the time - because it was not yet "earned", but now that it is settled that the customer will not follow through, it becomes income to your company.

 

So, record in invoice, likely using a special other charge item for the case - named something like "forfeit deposits", and using an income account.  Record it on the date you recognized that the customer would not follow through, or the first day of the current reporting year.

 

Then edit the payment and apply it to the new invoice.

2 replies

N
Nick_M
October 26, 2020

Hi there, HOw to clear a depost from serva.

 

Thank you for taking the time out of your day to post here in the Community. In order to clear this out I would suggest deleting the available credit that was created when you created the invoice for the customer. Even though they aren't your customer anymore, you can follow these steps below:

  1. Click the Customers menu and select Customer Center from the drop-down list.
  2. Select the Customers & Jobs tab.
  3. Choose the customer with the available credit from the customer list.
  4. Open the credit memo you want to delete.
  5. Click the Edit menu. Select the Void Credit Memo or Delete Credit Memo option from the drop-down list, depending on your preference. If you receive a warning that voiding the memo changes any attached invoices select Confirm.

You can find additional information on credit memo, how to apply them and much more in the articles included below:

Thank you for your time and have a lovely evening. 

BigRedConsulting
BigRedConsulting
October 27, 2020

The OP didn't ask about a credit memo.  The solution does not entail voiding anything.

BigRedConsulting
BigRedConsultingAnswer
October 27, 2020

It sounds like you received a customer pre-payment and recorded it using the receive Payment feature and it remains unapplied, not paying down an invoice.

 

If so, that prepayment was not recognized as income at the time - because it was not yet "earned", but now that it is settled that the customer will not follow through, it becomes income to your company.

 

So, record in invoice, likely using a special other charge item for the case - named something like "forfeit deposits", and using an income account.  Record it on the date you recognized that the customer would not follow through, or the first day of the current reporting year.

 

Then edit the payment and apply it to the new invoice.

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