Deposits on Exchange Parts
This help file explains the processing of Deposits on exchange parts from a supplier. That is, when you purchase parts and are charged a deposit that will be credited back to you when you return the old part that was being replaced.
Step 1:Processing the Purchase Order/Invoice
The Invoice from the supplier is processed in Purchases Orders as per normal. The Deposit is also placed on the Purchase Order using the ‘DEP’ Special Item.
Note: If there is GST Charged on the Deposit value, enter a G for GST in the Tax column.
Once the Dayend is processed this Deposit value will sit on the Deposit AR account.
Step 2: Receiving the Adjustment Note for the Deposit
Once the old part is returned to the supplier you will be issued with an Adjustment Note. This needs to be processed in Suppliers>>A/P Invoice Entry.
- Enter the credit note information as per normal
- In the distribution area tab to the Subledger field and enter the account code for the Deposit AR (click on the down arrow and search if you don't know it)
- Tick the Pay box for the original invoice from the supplier where you were charged for the deposit
- Click Ok
- Click on Yes to exit anyway as the GST value will be unapplied
- Code the value on the second line to GST Claimable
- Close and post the batch
If you have any queries regarding Deposits on Exchange Parts in COSTAR, please contact the Support Desk.
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