This is the easiest way to keep a prepayment as “Other Income”.
Retained Deposits
Find the Customer
Go to Commands > Receive Prepayment
Select Payment Type of User Entered GL Account
Enter the GL account for Other Income (or any other account you want)
The default Other Income account is 4300
Enter Payment Amount of the NEGATIVE of the amount you are keeping.
Optional to link to an order.
Click OK.
Check the Prepayments window to see that the previous prepayment is now offset.
Obsolete as of 10/1/13:
However it does do the accounting correctly
Find or insert an inventory item called “Retained Prepayments”.
Mark it as a Service item (do Not Keep in Stock)
Assign this item to ledger account Other Income.
Insert an Order
1 item at the price of the prepayment to be retained.
Insert Invoice.
Apply the prepayment to this invoice
Obsolete as of 10/1/13:
However it does do the accounting correctly
Customer forfeit a prepayment.
You keep a prepayment from a customer that is not applied to an invoice and not being refunded.
Find the Customer
Commands > Adjust Receivables
Load All Invoices (If needed)
Apply the prepayment amount to Account 2600, and the newest invoce.
Click OK.
Prepaid amount is now zero.
Commands > Adjust Receivables
Enter ledger account, likely “Other Income”, 4xxxx
Apply the NEGATIVE amount to the invoice.
Click OK.
Revised 10/1/2013 AG