### Customer and Supplier Deposits
Source: https://help.jaz.ai/en/articles/11324282-customer-and-supplier-deposits

**Q1: What are Deposits and where can I find them?**

- Deposits are available under both the Sales and Purchases modules
- It allows you to manage:
  - Customer Deposits (liabilities)
  - Supplier Deposits (assets)
- This makes it easier to track advance payments, top-ups, and drawdowns.

**Q2: How does Deposits help with my sales/purchase workflows?**

- By clearly separating deposit balances and integrating them into payments and invoice workflows, the module ensures accurate liability and asset reporting.
- It reduces manual tracking, improves audit trails, and provides better control over prepayments and credit usage.

**Q3: What are some example activities where I can use this module?**

- Here are some common scenarios where Deposits is useful:
  - Prepayments
    - Payments made *before* goods or services are received.
    - Examples
      - Tour deposits, prepaid medical procedures, software credit top-ups.
  - Security Deposits
    - Funds held to cover potential future obligations or damages.
    - Examples
      - Rental deposits, event space bookings, equipment rentals.
  - Retainers
    - Prepaid fees to retain services over time (common in professional services).
    - Examples
      - Legal retainer, freelance project retainers
  - Deferred Revenue
    - Money received for services not yet rendered.
    - Examples
      - Annual subscription paid upfront, booking fees, class packages.
  - Top-Ups / Recharges
    - Adding funds to a balance account (like digital wallets or service credits).
    - Examples
      - Wallet credits, prepaid internet.

**Q4: How do I add or manage deposit accounts for customers/suppliers?**

- You can add and manage deposit accounts through the **Manage Deposits** settings.
- This lets you define which account to use when tracking deposits for specific contacts. Simply go to **Sales/Purchases > Manage Deposits** to set up the appropriate accounts.**Q5: What does the “Block Insufficient Payments” setting do?**

- Enabling the **Block Insufficient Payments** setting prevents invoice or bill payments if the customer’s/supplier’s available deposit balance is insufficient for a transaction.
- This ensures financial accuracy and protects against overdrawn balances.

**Q6: How do I manage my Balances?**

- The Balances tab shows a summary of all contacts with deposit activity
- You can filter using these sub-tabs
  - **All:** All contacts with deposit records
  - **Balance Available:** Contacts with remaining balances
  - **Fully Drawn:** Contacts whose deposits have been fully used or are overdrawn**Q7: What does Balance Transactions tab do?**

- Deposit Transactions tab lists all deposit-related activity
- You can filter using these sub-tabs
  - **All**: All deposit transactions
  - **Deposits**: Top-ups, such as cash-ins or invoice-linked/bill-linked deposits
  - **Drawdowns**: Usage of deposits, like payments applied to invoices or bills**Q8: Can I track deposits in multiple currencies?**

- Yes. The Deposits module supports **multi-currency deposits**, and all balances and transactions will reflect the relevant currency.
- This is especially useful for businesses dealing with international customers or suppliers.

**Q9: How do I reverse a deposit?**

- If you recorded an error in the deposit you can reverse it by voiding the related journals/transactions, or reverse it by creating journal entries reversing the error.

**Q10: What do I do if a customer cancels their order and requests a refund of the unused deposit?**

- Record a drawdown transaction for the refund.
- Optionally issue a credit note or a refund payment, depending on your workflow.

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