When I set up my file, I was able to utilise the "Deposit" aspect of Customer payments. This was used when accepting a quote to enable production, and was held in an asset account on the balance sheet. When the quote was turned into an invoice, the deposit amount was entered in (NOT as a line item) and reduced the balance owing. All this was working perfectly, until recently, no credit notes required, no extra line items, just perfect. Now the deposit from the invoice is going to my bank account, which doesn't match anything, as the actual deposit (from months prior) has been coded to the asset account. How can I change the deposit settings to point back to the asset account? Why has this happened Intuit? I didn't change anything, there must have been changes made in the back end when running your upgrades. Please explain how to fix this issue.
Welcome to the Community.
You can create a new deposit transaction and select the correct account to change the deposit settings to an asset account. Let me provide you more information to help you correct this.
This usually happens if you have turned on the pre-fill forms with previously entered content option. Then someone may have created a deposit to the bank which changed the selection on your deposit transaction.
Once done, the account selected on your last transaction will automatically be changed as your default account every time you create a new deposit.
Also, by default, once you create a bank deposit or record a receive payment, it will select the accounts alphabetically by order from Bank to Current Asset.
If you want to edit a payment that has been deposited, here's an article for your future reference: How To Edit a Payment or Sales Receipt That Has Been Deposited.
Post a reply below if you have further questions. I'll always be right here if you need help.
So, the deposit into the bank account has been coded to my asset account. Due to the above setting, when the invoice is created, the deposit is now pointing to the bank account, not the asset, as it was previously. The invoice deposit is not physically received at this time, only accounted for now on the invoice. I need to change the above setting so that it points to the asset account and not the bank account.
It turns out there is no way to apply a default account for specific types of transactions, i.e. Deposits > Current Assets. In order to apply the correct account to the deposit, we will need to update the deposit to the Current Asset when creating it for the Invoice.
For additional context, there are actually a couple different reasons on why the deposits are recording to the bank as opposed to the deposits.
Respond here if you have any other questions.
Maybe we need to change one term, deposit to prepayment, as I am concerned we are not talking about the same things.
Step 1: When we receive the prepayment, it is paid by the customer into the bank account. This deposit is coded to the asset account, where it stays until the invoice is created.
Step 2: When creating the invoice, the "Deposit" field is used with the amount that has been prepaid to reduce the total owing on the invoice. Nothing in the bank has occurred at this time.
Just months ago, when doing step 2, the prepaid amount was coming off the asset account that was used in step 1. It isn't the case any longer, and is now throwing everything out. I am assuming that there have been changed made in the back end of the program that I now need to change back.
At the moment the only solution I can see is to journal the bank transaction (that is not coming from the bank feeds) with other side the asset account, which is very, very messy, and as far as I can see, should not be necessary.
Just like other settings, in payroll as an example, there are default accounts where things go, wages into wages account, super into the relevant super expense and liability accounts, PAYG into that liability. Why is this any different? Unfortunately, I don't know where these settings are.
Can you please suggest a different option.
Thank you for further clarifying. By your initial message we understood that you were creating an additional deposit, which as you've clarified is not the process you've been following. After reading your expectations of the software and consulting with my team, it sounds like you're using the Current Assets as a holding account in which to reduce your invoices from the customer prepayments.
Since Current Assets is not a default (out of the box) account; I am not quite sure how you set it up. Without taking a look, I'd actually recommend using the method utilizing the Unapplied Cash Payment Income (What's Unapplied Cash Payment?); that said I think it be best if you give us a call so we can take a look at your account and find a solution that works for you.
Call us at 1800 046 038.