How to easily handle vendor deposits in VISUAL ERP

You can easily process vendor deposits in VISUAL – it’s quite simple.

But before you can do anything – you first need to configure VISUAL to allow for it.  To do this, add the following entry in Preference Maintenance

Set EnableVendorDeposits =Y in the Visual Financials section

Set EnableVendorDeposits =Y in the Visual Financials section
OR, you can add the following to your VISUAL.ini file:

Once done – you are good to go with the following steps to process a deposit.

Walk-Through

Let’s say your vendor requires a deposit of $6250 (half the value of the purchase)

1. 1. First create the purchase order for the goods/service.

      

   2. Next, to record and process the deposit – create an AP voucher in the Payables Invoice Entry window.Enter the respective vendor information in the header area.  Then insert a line item for the deposit as follows:♦  Enter a description for the line in the Reference column (if needed)
      ♦  Enter the purchase order number in the Order ID column.
      A must for this to work!
      ♦  Enter a GL account to use in the G/L Account ID column – it should be a GL account where you want to manage deposits and prepayments. – Please don’t use the default PO accrual GL account.
      ♦  Enter the deposit amount in the Amount column.

      
      Note – If you DO use the PO accrual GL account you will likely mess up your accruals when reconciling.
      

1. Save & Pay the deposit invoice as required
2. When the goods/services have been received – do the PO receipt.
   
3. Now when you receive the vendor invoice, proceed to voucher it in the Payables Invoice Entry window.  Use the F6 key to call up the receiver(s) associated with the purchase.  Select the appropriate receiver(s) and click OK.
   
4. VISUAL will populate the grid with the lines associated with the receipts – AS WELL AS add an additional line item for the deposit (or prepayment) as a deduction to the total amount owed.
   

As I said – simple.