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Accounting Impact on Uncleared Down Payment Customer

Jan 19, 2017 at 10:50 PM

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Hi,

I am having problem with my special GL account - down payment customer.

Scenario :

Payment has been captured and invoice had also be issued in my debtors account but it has not reduce my special GL account balance which keep accumulating and upon generating the trial balance, the figure shown in the liability section.

Question :

1. Since my debtor is already zero (payment & inv capture), why is my special GL account still shown as outstanding?

2. Since my special GL down payment is in credit balance, where is the other debit balance hang?

3. What is the accounting impact?

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2 Answers

Yahui Liu Jan 20, 2017 at 06:06 AM
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Hi,

Let's have an example to understand the issue:

1) You have a down payment received from a customer (debtor).

Accounting entry

Debit: Bank 100$

Credit: Special GL (Customer down payment) 100 $

2) Then you deliver the service/product to your customer and invoice them (make it simple, I didn't involve the delivery process)

Accounting entry:

Debit: Customer (normal reconciliation account) 200$

Credit: Revenue 200 $.

3) You record the payment. (By right, customer will only pay the net amount 100$).

Accounting Entry:

Debit: Bank 100 $ (remaining amount)

Debit : Special GL 100 $ (down payment clearing and zeroize the down payment )

Credit Customer 200 $ (clear the invoice)

In conclusion: I think you should check your payment record. There should be some clearing account carrying the balance. Once you find the account, you can use it to clear your down payment balance.

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Sethuraman Ganesamurthy Jan 28, 2017 at 05:09 AM
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Hi,

Customer balance and special gl balance will not get cleared automatically.

You have to manually clear the balances using T code F-32.

Regards,

GSR

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