[DVigliatore]

I know NV2 has the ‘Tools – Apply’ command available to reconcile payments made from customers. That’s great!

Many of our customers, however, holdback 10% of the funds due on the invoices. For this reason, each customer has 2 receivable acccounts on our G/L:

1) The current account
2) The holdback account

Using the ‘Tools – Apply’ command will create a boomerang transaction that posts to the current account.

Is there any way (simple and error proof) to re-direct the boomerang transaction to the holdback account? The purpose of this is for A/R reporting, so that we know that a customer owes us x amount of dollars for current invoices, and xx amount of dollars relating to holdbacks.

The way we do it know is as follows:

A/R Invoice 10,000.

In the bank deposit journal details we post the 2 entries to effect the transaction:

– 9,000 pmt is made by our customer

1) 10,000 to the CURRENT ACCOUNT
2) (1,000)to the HOLDBACK ACCOUNT

-the net amount matches the check amount and the bank deposit book
-we then go to the current A/R account and reconcile the 10,000 manually
-the the 1,000 will show as being receivable in the HOLDBACK account as of that day.

-these type of customers begin aging the holdback portion on the day the payment is made; hence another reason why we are tracking it this way.

Thanks for your help,

[MSchappler]

Set the Apply Method to Reference and skip the Hold Back account and it will reconcile properly.

I used Tools > Apply Deposits from the Bank Deposits Journal.

Regards,

Martin

[DVigliatore]

I tried that…but how do I send the holdback amount to completely different A/R account.

The current and holdback accounts are 2 separate customer accounts.

[MSchappler]

In your bank deposits journal you would add the new posting in the transaction explorer with your bank account specified and in the details of this transaction add the two entries to:

Your Customer AR account 10,000.00
Your Hold Back Account (1,000.00)

Block the posting above and right mouse click Tools > Apply Deposits.

Press F11 in the Cr Account (or right mouse click Window > Define Column) and alter the pick root if the accounts being displayed with F3 (pick) does not show your Hold Back Account.

Regards,

Martin

[DVigliatore]

I thought there may have been a simpler method other than making the 2 postings in the 2 separate lines as we currently do; however this will save us the step of going to each A/R account and then manually reconciling…I’ll give it a try…thanks.

I guess I wouldn’t have to ‘apply the deposit’ in the holdback accounts as the amount has not been paid; it is still technically a receivable.

Thanks,

[Author]

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