Apply a Client Deposit to a Non-Posted Invoice

This article will show you how to apply a Client Deposit to an Open Sales Order/Invoice. If you have already posted the Invoice and you need to apply a Client Deposit, see this article.

Note: This also assumes that there is already a Posted Client Deposit or A/R Credit for the Client. If there is not, please see the article on how to Enter a Client Deposit.

1. Apply a Credit that is EQUAL TO or LESS THAN the Balance Due

1.1. Go to the Sales Order Payments tab

You can see there is a Balance Due = $71.00, which is currently going to be charged to the Client's A/R if we applied no deposit to the order. This is NOT what we want to do because the customer already prepaid.

To apply a deposit, click the + symbol next to the Apply Open Credits or Deposits section and you'll get a popup window where you can select the deposit to apply.

Sales Order - Payments tab, charge balance to A/R

1.2. Select the credit to apply

In this list, you will see all outstanding A/R amounts for the Client (debits and credits). Select the Client Deposit that you want to apply.

Select the credit to apply.

1.3. The Client Deposit has now been applied to this Order.

Now you can see that the Balance Due = $0 and the $71.00 is listed as the Applied Amount. If the Charge to A/R field still has an amount > $0.00, you'll need to zero it out.

Note: If the amount of the credit/deposit was LESS THAN the Balance Due, the instructions would be the same except you would end up with an amount greater than $0.00 in the Charge to A/R field.

Sales Order - Payments tab, Client Deposit applied v1

2. Apply a Credit that is GREATER than the Balance Due

Using the same Sales Order as above, let's look at an example where the amount of the Client Deposit is GREATER than the Balance Due.

Here, I've applied a $500.00 credit to the same $71.00 Sales Order. If we didn't change this, there would be a $429.00 credit balance on the Order. We don't want to move the credit balance to this order; we want to leave the remaining credit balance with the original deposit.

Sales Order - Payments tab, credit over-applied

2.1. Change the Applied Amount

To change the Applied Amount, double-click on the deposit that was just added and you will be presented with an Amount to apply popup. Change the amount here and click OK.

Sales Order - Payments tab, change applied amount

2.2. The Client Deposit has now been applied to this Order

Now you can see that the Balance Due = $0 and the $71.00 is listed as the Applied Amount. If the Charge to A/R field still has an amount > $0.00, you'll need to zero it out.

When this order is posted, the $500.00 Client Deposit will be reduced to $429.00.

Sales Order - Payments tab, Client Deposit applied v2

2.3. The remaining Client Deposit balance

Navigate to Accounts Receivable > View A/R Aging and find the original Client Deposit.

Here you can see the Original Amount, Remaining Balance and detail about how the A/R deposit was applied.

A/R Document after applying partial deposit