Deposit by Credit Card, Remainder by Finance
The invoice for the policy
shown below is being financed by Close Brothers (i.e. a sales invoice will be
created for £575 to Close Brothers). However in this instance the customer has
chosen to pay an initial deposit of £100 using his own credit card...
Before You Start - Setup
Your Accounts
Before showing you how to
resolve this problem, you’ll save a lot of time and trouble if you do the
following set-up, starting from your Durell Main Menu....
·
Click the
“Accounts” button
·
Click the red
“Setup” button
·
Click the “Nominal
accounts” tab
·
Ensure the
drop-down at the right says “Sales”
·
Click the
“Starburst” or new button
·
Create a new
nominal account called “Client Deposits” with the code “DEPO”, as shown below
·
Click the red
“Floppy Disk” or save button to save your new nominal account
·
Now click the
“Invoice / text desc” tab
·
Ensure the
dropdown is set to “Sales invoice descriptions”
·
Click the
“Starburst” or new button
·
Create a invoice
description called “Client Deposit”, as shown below
·
Click the red
“Floppy Disk” or save button
·
Reset the
dropdown to “Sales text descriptions”
·
Click the
“Starburst” or new button
·
Create a text
description called “CLIENT DEPOSIT” in upper case
·
Click the red
“Floppy Disk” or save button
·
Repeatedly click
the “Exit Door” icon to exit and return to your Main Menu – you are now ready
to proceed
Resolving The Problem
The problem is that you’ve
got a £575 invoice to Close Brothers, of which £100 is being paid by someone
completely different: the client. To account for this properly you should first
complete and post the policy normally, as if it was just financed by Close
Brothers. Afterwards, with the policy highlighted in the client’s scrolling
list of policies, do the following...
·
Click the
“Signpost” button and select “Jump to / Sales ledger”
·
In the sales
ledger click the “Starburst” or new button
·
Create an invoice
to the client for the deposit amount (e.g. £100), as shown below
·
If you’ve done
the setups, above, you’ll be able to select the...
o
words like
“Client Deposit” from dropdowns on this screen
o
nominal account
“DEPO” for Client Deposits
·
Save the invoice
with the red “Floppy Disk” icon and exit with the “Exit Door” button
·
Back in the
scrolling Sales Ledger create another invoice, this time to Close Brothers
·
VERY IMPORTANT -
you must set its “Type” to “Credit”, as shown below, so the value shown is a
minus sum
·
Save this credit
with the red “Floppy Disk” icon and exit with the “Exit Door” button
·
Back in the
scrolling Sales Ledger, highlight the client’s invoice, as shown below, then
click the “Pile of Money” icon to auto-reconcile it
o
Set the Date to
today
o
Set the Payment
method to Credit Card
o
Set the Bank to
your Client Bank A/C
o
Set the
Cashing-up Method to Cash-up now as individual item in bank
o
Click “OK”
Having done the above...
·
You will have
£100 of your client’s money in the bank, properly accounted for
·
Your Close
Brothers account will have been clearly and understandably reduced by the £100
·
Your Close
Brothers statement and subsequent reconciliation in the Cashbook will be clear
and obvious
·
Your nominal
accounts – particularly your Transferable Commission – will remain 100% correct
·
The nominal
account for Deposits will eventually end-up at zero
Refund Deposit by Credit Card, Remainder by Finance
This is the reverse of the
preceding section, though the answer also depends on when the client requests
the refund. If the client decides to cancel a policy like the one above, either
immediately or after some weeks, you'll need to create a Mid Term Adjustment
(a.k.a. MTA) for this early termination. Depending on how soon the client
terminates the amount to refund will vary. So if the MTA refund value is...
·
equal or less
than the original Close Brothers invoice you’ll only need to create a credit
(negative) to them
·
more than the
original Close Brothers invoice then it’ll have to be handled like the original
policy, with additionally...
o
a separate credit
(negative) for part of the deposit to the client
o
a separate
invoice (positive) for part of the deposit to Close Brothers
