Payments On Account

Most banking transactions in Goldenseal accounting software apply to a specific business transaction (or multiple transactions). However, if you need to enter a payment or deposit without applying it to a specific purchase or sale, then you can use an On Account transaction.

Payments On Account

Goldenseal accounting software allows you to pay money to Cost accounts "on account". To do so, enter On Account into the Transaction Paid field of a Bank Check or Bank Payment.

Goldenseal subtracts the on account from the amount owed for purchases, the next time you use the Pay Bills command.

HINT-- It is not hard to identify specific bills when you make payments, so the only time you need to use the Paid On Account option is when you make a payment before any purchases have been entered.

To pay cash to a vendor on account, follow these steps:

Choose Cash Transactions from the Bank menu, then choose the account that is the source of the cash.
Click the New button.
Enter Payment into the Type field near the top of the window.
Enter the payee type, and the account being paid.
Enter Paid On Account into the Transaction Paid field.
Enter the payment amount into the Amount field.

Deposits On Account

You can also receive money from Job accounts "on account"-- enter On Account into the Transaction Paid field of a Bank Deposit.

Goldenseal accounting software stores the credit in the job account, and subtracts it from the next bill amount when you use the Billing command.

HINT-- It is not hard to credit deposits against specific billing records or sales, so the only time you need to use the Paid On Account option is when you receive a payment, before you've entered the transaction that it applies to.

To accept a check from a customer on account, follow these steps:

Choose Checking Transactions from the Bank menu, then choose the account where the money will be deposited.
Click the New button.
Enter Deposit into the Type field near the top of the window.
Enter Customer into the Received From field, and enter the customer in the Account field.
Enter Paid On Account into the Transaction Paid field.
Enter the payment amount into the Amount field.

Construction Project Deposits

Clients frequently make advance payments for construction projects, to users of our construction accounting software. The best way to apply such deposits depends on how you will bill for the project.

For a draw schedule project, enter the deposit as the first Draw Schedule billing. To do that, create a Billing Record for the deposit payment, the same as any other draw payment.

For a progress payment or time and materials project, enter a deposit On Account, as described in the previous section. When you do later project billings, you can deduct part or all of the deposit when you create Billing Records.