What is the best process to record customer deposits on sales orders? Customers place an order, might ship in say two weeks, they pay a deposit at the time of the order. I have an deposit item pointed to a current liability for the customer deposits. Do I just record a sales receipt for the deposit, then invoice the sales order once it ships, and use that same deposit item to deduct the deposit? Seems like there should be way to tie the deposit to the specific sales order, and not have to remember to deduct the customer's deposit when invoicing.
Yes what you have described is one way of handling deposits and its probably the best.
FYI - you can add the deposit deduction onto the sales order so you dont have to remember later.
The alternate (worse) way of handling deposits is to simple receive a bank deposit and code to AR with the customers name - but not enter any item. This just leaves on open credit within the customers AR record and you then apply that credit the ales invoice once its created.
I was thinking there's no point in putting the deposit on the sales order since it's non-posting, but that would make it automatically show up on the invoice created from the sales order, so that makes sense. Thanks!