Invoicing Refundable Deposits

kitsky

My centre collects refundable deposit for each new student. It need to be itemised in the invoice.

When I set up the item, it only allow me to tie the item to an Income account. The problem is, the deposit has to go to a Liability account as it must be refunded eventually.

I can't seem to do that in Product set-up nor post directly to a liability account when creating an invoice... Am I missing something?

Thanks

James_Hudson

Hey Kitsky,

It's not possible to associate a product with a liability account, but you can always create a journal transaction that debits an income account and credits a liability account to lower the balance of the income account, and raise the balance of the liability account.

When it comes time to repay the deposit, you can categorize the expense from your bank account to the liability account in question to lower its balance.

James

kitsky

Hi James

Thank you, James, for the confirmation.

The journal entry is what I am reluctant to do... it means that the users cannot run without the accountant. And it is extra admin work as student numbers increases...

It is a restriction that Wave need not put on the system because invoicing can include any type of account, including iexpense accounts (e.g billable expenses), contra for refundable deposits (liability) etc. I work with other systems like Quickbook and MYOB... which may issue a warning but allow the user to proceed.

It is a real pity... I hope Wave will consider changing this. Until then I may have to look elsewhere...

Thank you again, James.

carolroux

I have the same issue. We are an events company and every single customer has a refundable deposit.