New Approach to Working with Deposit Folios

Modified on: Tue, 23 May, 2023 at 2:34 PM


As part of the work with folios, we have implemented many changes to the work with deposits. We have applied a completely new concept separating them into two groups - Deposits and Advance Payments.


Deposits include:

  • Open deposit folios only containing a payment without any charges.
  • The use of a deposit is a transfer of the payment from the deposit folio with services (under the well-known mechanism with two corresponding transfer payments - a positive and negative one). The deposit use is initiated by the folio with the services through the “Transfer Deposit from...” on the Payments screen.
  • The remaining deposit of the deposit folio is the sum of its payments.
  • The payment transferred to the folio with the services is accompanied by info about which deposit folio the used amount comes from. Back in the negative payment in the deposit folio, there is info of where the payment is transferred to.
  • Voiding the deposit use operation is made through the voiding of any of the two payments. It will automatically void the related payment.
  • Each deposit folio can be transformed into Advance Payment Folio by closing this deposit folio.

More info of the payments in deposit folios can be found in the Deposits article

Advance Payments

Advance Payments include:

  • Closed deposit folios containing charges.
  • The charges can have different tax groups. All charges of the “Pre-invoiced Deposit” revenue group.
  • The Advance Payment folio can be UNPAID. If this is the case, it is treated similarly to all unpaid folios and can be found in Accounts Receivable Report.

  • The use of advance payment creates special charges in the folio with the services related to the funds consumption with a negative value. When using an advance payment, you need to select from which tax group to consume (depending on the available amounts in the advance payment folio). The funds consumption is initiated through the folio with the services and the “Deduct Advance Invoice” feature on the Charges screen.
  • The source of the funds consumption charge is the advance payment folio (shown in a separate group in the view of charges).
  • Remaining Advance Payment is calculated on the basis of the charges in the advance payment folio and the already used amounts. The sums are arranged by tax groups.
  • Voiding the funds consumption operation is performed through the voiding of the funds consumption charge leading to the restoration of the value of the remaining advance payment. 

  • The Advance payment folio has an advance payment return feature - Return (1). This operation creates a credit note containing the filled-in amounts by tax groups.
  • The Advance payment folio does not have separate features for a partial or full correction. To this end, the “Return” (1) operation is used.
  • Payments CANNOT be transferred from the Advance payment folio. There is no feature for folio re-opening and duplication.
  • The advance payment folio can also be created on the basis of the existing folio with charges. 

More info of the creation of an advance payment folio and its use can be found in the Advance Payments article .

Advance Payment on the basis of a folio with services

To automate the process of issuing and using the advance payments, we have added one more option for creating an advance payment folio.

  • An advance payment folio can be issued on the basis of an existing folio with services. It corresponds to the same conditions specified above. The process of its creation is automated.
  • From the folio with services, the user should select the charges for which an advance payment is to be created, as well as to specify the desired percentage. To this end, the Charges screen uses the “Create Advance Invoice” feature.

  • The system creates a new Advance payment folio. The selected charges are copied with a new amount (depending on the selected percentage) and the “Pre-invoiced Deposit” revenue group. The texts and the details of the original charges are kept to give a clearer picture of the purpose of the advance payment.
  • The funds consumption is created in the folio with services. The charges are summarised by tax groups.

As a result of the whole operation, you have an advance payment document  whose amount is a percentage of the specific services. In the same time, the target advance payment itself is reflected in the folio containing services the advance payment refers to. This way the possibility for missing to reflect the use of the advance payment is eliminated and the process of closing the folio with the services is simplified.

More info of the target advance payment can be found in the Advance Payment Folio Based on a Folio with Services.

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