Is the deposit taxable or not?
- If the deposit is non-refundable,
- a taxable transaction must be made with a sales GL account,
- If the deposit is refundable,
- a non-taxable transaction must be made with a passive GL account.
In this case if, as it is a loan to a customer, you might decide to exclude it from the sales report
What is the cost of filing on a tire bill?
The cost should be $ 0 since it is only a deposit and this in the 2 cases of figures above.
How to handle the costing on a deposit where there would be work and parts and the order is canceled?
- A) If the deposit has not been treated as a (repayable) transaction,
- a product invoice must be made with a "-1" DEP (non-taxable) and a new taxable NRD (Non-Refundable Deposit),
- Go to C)
After 12 months, unused deposits should be converted into transactions.
- B) If the deposit was treated as a transaction,
- go to C)
- C) Stock and labor management:
- The active WO is transferred with the work of the client to the non-taxable "Internal Garage" client,
- The invoice is closed with a "Cost Deposit" Payment Method with a GL in the same series as (cost of merchandise sold.)