Configuring Prepaid Deposits

Configuration of any product requires both a Product Category and a Product Type. With the Product Category, Generic Ledger (GL) accounts must be defined, which are inherited by the products associated with that category.

The most important part of setting up a prepaid deposit product is configuring the GL accounts correctly. A prepaid deposit product should only have two GL account specified on the GL Accounts tab: one Accounts Receivable (A/R) account and a placeholder Sales account. For the Accounts Receivable account, the account specified should not be an A/R account, but rather a liability account for tracking deposits. Given the way GL entries are generated within Aptify, the configuration of a liability account specified as the A/R account, causes this liability account to increase when the prepaid deposit is received and to decrease when it is used for payment.

The Sales account can be any account. Since all prepaid deposit orders have a zero dollar products, no GL entries will be generated by the Order Entry system for the Orders record (but GL entries are created for the corresponding Payments record). However, you need to specify a Sales account since all Aptify Products require one.

This section covers the following sub-topics:

• Establishing a Prepaid Deposit GL Account
• Creating a Product Category for the Prepaid Deposit Product
• Creating the Prepaid Deposit Product
• Linking a Prepaid Deposit Product to a Payment Type