How to pay a deposit for a floorplanned stock

Based on individual agreements, sometimes dealers are required to pay a deposit or security for financing inventory under a floorplan arrangement.

Create a Finance Company Asset Account

1. In either the Accounts Payable or Receivable tab, click Account Maintenance.
   
   
   
2. In the Asset tab, click Add.
   
   
   
3. Enter an Account Code, Name and Description.
4. Assign a Classification of Asset.
5. Click OK.
   
   

Check with your accountant whether this account allows GST or not

Create the invoice and payment for the bond/deposit amount

1. In the Accounts Payable tab, click Raise Invoice & Pay Bill.
   
   
   
2. In the GL Account field, select the Finance Asset account you have set up.
3. Enter all remaining invoice and payment details.
4. Click Post.
   
   

Ensure you remove the GST portion for the payment

The deposit amount will stay in the Finance Asset account until returned

Transfer the deposit returned by the financing company to Accounts Receivable

1. In the Accounts Payable tab, click Make Payments, then Bulk Payments and Transfers.
   
   
   
2. Select the Finance Asset Account and click Transfer.
   
   
   
3. In the To Account field, select Debtors.
4. Select No Consolidation (Same Payee).
5. Select the payment, and enter a Reference and Narration.
6. Click Post.
   
   

Banking the deposit returned by the finance company

1. In the Accounts Receivable tab, click Bank Deposits.
   
   
   
2. Click New Banking.
   
   
   
3. Enter the Received Date, Payment Type, Amount, and Finance Company.
4. Select the Payment Amount, click Record, then click Post.