Overview
The Deposit feature on the Invoicing Page in Evolution allows your team to take and manage multiple deposits against a single document or order before it is invoiced. Each deposit is tracked individually, can be reversed when needed, and creates the appropriate accounting entries based on the Branch deposit account setup.
This provides a clearer audit trail, better visibility into who accepted a deposit, and more accurate handling of deposit liabilities and Accounts Receivable activity throughout the invoicing process.
Deposit Management Setup and Workflow
Deposit Setup
On the Branch Page, go to the Finance tab and enter the Deposit Debit and Credit GL Accounts for each Branch where deposits will be accepted.
The Branch Page can be accessed from Settings > Administration.
The accounts are generally configured as follows:
- Deposit Debit Account: Typically a Bank, Cash, or Undeposited Funds Asset account.
- Deposit Credit Account: Typically a Customer Deposits Liability account.
Using a liability account for the Deposit Credit Account usually provides the clearest accounting treatment. When the document is invoiced, Evolution can automatically reclassify the deposit balance to the invoice's Accounts Receivable account when necessary.
Contact your Accounting Team if there are questions about which GL accounts should be used.
Taking Deposits on the Invoicing Page
Once you open a document on the Invoicing Page, select the Deposit button at the top of the page to take a deposit.
The Deposit window will open and allow you to enter the deposit information.
Enter the deposit amount and select a Payment Type such as Cash, Check, or Credit Card. Once the required information has been entered, the Add button will become available.
Select Add to post the deposit. The deposit will then appear in the data grid along with any other deposits entered for the document.
Comments can also be entered when taking the deposit, and multiple deposits can be taken against the same document.
Deposit Journal Entry
When a deposit is added, Evolution automatically creates a Journal Entry in the General Ledger using the Deposit Debit and Credit GL Accounts configured for the Branch.
The Journal Entry references the document's Invoice Number and Customer Number.
The Journal Name uses the following format:
Deposit {Invoice Number} MM/DD/YYYY
When a deposit is received, the system creates the following accounting entry:
| Entry | Account | Purpose |
|---|---|---|
| Debit | Branch Deposit Debit Account | Records the asset side of the deposit received. |
| Credit | Branch Deposit Credit Account | Records the offsetting liability or holding balance for the deposit. |
Print a Deposit Receipt
Users can print a deposit receipt from the Deposit window using the Deposit Receipt button.
The receipt provides a record of deposits that have been taken or reversed for the document and can be used for customer-facing or internal documentation.
Reverse Deposits
Deposits can be reversed if one was entered incorrectly or otherwise needs to be backed out.
The reversal does not remove the original deposit. Instead, the original deposit remains in the history and is marked as reversed, preserving the complete audit trail.
To reverse a deposit:
- Select the deposit in the data grid on the Deposit Page.
- Select the Reverse Deposit button.
The deposit will then display as reversed in the data grid, including the user who performed the reversal and the date it was reversed.
Evolution also automatically posts a Journal Entry to the General Ledger that reverses the original amounts posted to the Deposit Debit and Credit Accounts.
The reversal references the same document information as the original deposit. The Journal Name will also include:
Rev MM/DD/YYYY
The date shown is the date the deposit was reversed.
Viewing Who Took or Reversed a Deposit
The Deposit data grid shows who entered each deposit and when it was taken.
Reversed deposits remain visible and are clearly identified as reversed, including who performed the reversal and when it occurred. This allows users to review the complete history of deposit activity for the document.
Viewing a Document with Deposits
When previewing or printing a document that has deposits posted against it, those deposits are shown in the Payments/Deposits section at the bottom of the document after the document total.
The remaining balance reflects the current document total minus any payments or deposits that have been applied.
Invoicing a Document with Deposits
When a document containing deposits is invoiced, Evolution reviews the Deposit Credit Account used for those deposits.
If the Deposit Credit Account is not an Accounts Receivable account, Evolution automatically creates a Journal Entry that moves the deposit balance from the original Deposit Credit Account into the Accounts Receivable account associated with the invoice.
| Account | Purpose |
|---|---|
| Original Deposit Credit Account | Removes the deposit amount from the liability or holding account. |
| Invoice Accounts Receivable Account | Moves the deposit amount into the invoice's Accounts Receivable balance. |
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