How to create a deposit for multiple Bills - Foreign Vendor ( Eg : Use one deposit to settle 30% of multiple bills)

Here we will be looking at how we can create and allocate a deposit when we have multiple receipts for a PO.

Lets start with creating a PO,

01. Go to Purchase

 
02. Click the Create button to create a new purchase order.  

 
03. Next Fill in the below details 
01.  Choose the appropriate   Vendor 
02.  Select the appropriate Purchase Team
03.  In the Product tab Add the product and quantity
04.  Then,  Confirm order

 
04. Approve the PO by clicking Approve order 

Now we have created the purchase order, let's explore how we can create a stand alone deposit for this purchase order. 

* For example, let's say we have Paid 30% of the purchase order, which comes from $110,000 PO value multiplied by 0.3, resulting in $33,000. 

05. Go to the Accounting Module >> Vendors >> Payments 

06. To create a new payment click Create

07. Next Fill in the below details

1. Select the payment type as "Send" (This will be automatically selected as we navigate through vendor >> payments).
2. Choose the appropriate vendor.
3. Tick the box for "Apply Manual Exchange" since we are paying through a foreign currency.
4. The exchange rate will be calculated once you fill in the next two fields.
5. Enter the amount in your currency (e.g. NZD).
6. Provide the destination journal amount - which is the amount you are about to pay in the foreign currency(e.g. $ 33,000) and mention the foreign currency
7. Select the date of the payment. 
8. Provide a memo.
9. Choose the appropriate journal. 
10. Select the payment method as Manual
11. Click on Apply while ticking the checkbox if you want to apply this rate for all transactions created on this date (optional). 

12. Click Confirm to finalize the process.

 

08. We will now consider a scenario where we receive multiple receipts for this purchase order.

1. Go to the Receipt section  
2. Select the quantity .   
    
3. Click the Validate and select the Create Back Order for the remaining amount. (so system will create the back order for balance quantity. Here it is 4500 units.
                                                                                                                                                                                 N​ow, lets create the bill for this receipt. Go back to the PO,
4. Click Create Bill
      
5. Choose the " Bill date" and select the Appropriate " Quantity" Here we have received 1000 Units
    
6. Click Confirm
                                                                                                                                                                                 Please note you will have to tick Changes verified & confirmed check box before confirming the bill, as there is a different in the PO quantity and bill quantity. (This a customization for 3 way reconciliation).                                                                                                                                                                                        Now the bill has been created and at the bottom you will be able to see the 30% deposit which we have created earlier. ($33,000)                                                                                                                                                                                         
7. Once you click the Add button : This will make the payment of $20,000, and bill will be now showing as fully settled.  
8. Go back again to the purchase order, and create a new receipt. Select the quantity here. (1000 Units)  
9. Then "Validate" and click "Create backorder"
    
10. Click "Create Bill" to create the second receipt.  
     
11. Afterwards select the Bill date and required quantity and click Confirm.
     
12. At the bottom of the bill you will be able to see an amount of $13,000, which is the balance of the deposit we have created earlier. Now you can allocate that to this bill by clicking add button. Then, you will have a balance of $7,000. This can apply the payment by clicking REGISTER PAYMENT in the bill. (so you can pay this through the bank account)                                                          
13. Let's return to the purchase order and proceed to receive the remaining amount by generating additional receipts
     
14. Update the remaining "Quantity" (3500 units)
     
15. Click the "Validate"
     
16. Create the final bill by clicking "Create Bill"
     
17. Select the Bill Date and click Confirm. (You can apply the payment through REGISTER PAYMENT option- (so you can pay this through the bank account)
    
                                                                                                                                                                               If you check the PO you will be able to see the Ordered quantity, Received quantity and Billed quantity will be equal.                                                                                                                                                                                                                                                    This process has been explained in detail here in this Video