Supplier Deposits are money that you have paid to a supplier which can be used against future purchases. 


  • Set up Accounts (necessary)

    • Set up a Supplier Deposits account in Account Mapping - must be an asset account able to accept payments (necessary)

  • Set up Customers (recommended)

  • Familiarity with Processing a Purchase (necessary)


  1. Add Supplier Deposit 
  2. View Supplier Deposits
  3. Use Supplier Deposits

Add Supplier Deposit 

[back to top]

Through a Purchase 

[back to top]

Supplier Deposits can be allocated to a supplier through a purchase order, for example if you have paid a deposit has been given for an item or service.

To add a supplier deposit through a purchase: 

  1. Create a new sale by navigating to Purchase -> New -> Purchase

    • Add to an existing purchase order by navigating to Purchase -> Purchases  and choosing a purchase order that has not yet been paid.

  2. Fill in the document header details as required

  3. Authorise the order

  4. Click +Supplier Deposit to add deposit details

  1. In the pop-up window that appears, enter the deposit amount, date of payment and which account it is to be paid from.

  2. Click Create to finish

  3. Complete the purchase order as usual

Through a Credit Note/Refund

[back to top]

If the supplier has refunded you a certain amount, the Credit Note function can be used to add this as a Supplier Deposit


To add supplier deposit through a credit note: 

  1. Navigate to Purchase -> Purchases and choose the purchase that the credit note will be applied to. It must be a purchase with an authorised invoice that has been paid. 

  2. Go to the Credit Note tab and fill it out as shown in Processing a Purchase

  3. Authorise the credit note

  4. Scroll to the Payment section. Click +Supplier Deposit to add the refund value as a deposit against future payments. You will be prompted to add a reference and amount. When you make a purchase from this supplier in the future you will be able to use this deposit as a payment method.

Through Spend Money

[back to top]

Creating supplier deposits through the spend money feature is useful when a prepayment is made which does not relate to any particular purchase, but still needs to be accounted for. 


To add supplier deposit through spend money: 

  1. Navigate to Financials -> Spend Money

  1. Select the bank account you are send the deposit from into, Supplier and Date. 

    • In the product drop down you might want to consider setting up a generic service item called Deposits to receive these payments

  2. Enter Amount deposited and change the account to the account you have assigned to Supplier Deposits

  3. Click Complete

View Supplier Deposit

[back to top]

To view supplier deposits: 

  1. Navigate to Purchase -> Supplier Deposits

  1. The list of supplier deposits for each customer will be displayed. The transaction the deposit is associated with can be accessed by clicking the link in green.

Use Supplier Deposit

[back to top]

Supplier Deposits can be used to offset payments owed. It can be applied to the purchase at the Invoice stage.


To use supplier deposit on an invoice: 

  1. Choose an authorised invoice for the supplier you have paid the deposit to from Purchase -> Purchases 

  2. In the tab, click +Use Supplier Deposit

  1. Select relevant credit from the Existing Deposit list

  2. Click Add & Save