Write off Remaining Customer Deposit Balance

Writing off customer deposit balance involves creation of journal entry and application of the journal against the customer deposit balance. Here are the steps:

1) Navigate to Transactions > Financial > Make Journal Entry
a. Choose an accounts receivable account in Accounts Column >
b. Enter an amount in the Debit column
c. In Name column, select the customer's name > click Add
d. Choose an account you want use to write-off the remaining customer deposit balance in the Accounts column
e. Enter an amount in the Credit column
f. In the Name column, select the customer's name > click Add
2) Click Save
3) Navigate to Transactions > Customers > Accept Customer Payment
4) Select the customer's name > If you have multiple accounts receivable accounts, select the account you used in the journal entry.
5) On the Apply tab > Invoices subtab > Mark the Apply checkbox on the journal entry.
6) Go to the Deposits subtab > mark the Apply checkbox on the customer deposit
7) Click Save.

Now a Deposit Application transaction is created and the GL Impact is Debit to Customer Deposits and Credit to Accounts Receivable for the amount of the write-off. This eliminates the Accounts Receivable balance.

To view the GL Impact on the deposit application, open the Journal > Related Records tab > Click Deposit Application > Actions > Select GL Impact.