WorkGuru provides a mechanise to record deposits paid to a supplier before you receive either the items or services or an invoice on the purchase order. WorkGuru will send through a purchase order deposit so you can reconcile the payment fully in Xero as you may not have the supplier invoice as yet. When the purchase order is received and costed correctly as per the normal process, WorkGuru will send through to Xero the final bill and a credit note to apply the deposit amount(s) to the bill, leaving just the outstanding amount to reconcile. As the actual purchase order/draft bill is sent through at the end of the workflow, it handles any changes that are made to the final purchase order.
Pre Requisites - Xero
Before setting up deposits in WorkGuru, please make sure you having the following set up in your Chart of Accounts in Xero:
- A liability account for Sales Deposits.
- A current asset account for Purchase Deposits.
Pre Requisites - WorkGuru
- Setup a deposit payment type using the current asset account setup for purchase deposits in Xero.
- An approved purchase order. Must not have a received or invoice dates or invoice number applied.
Add a Deposit to a Purchase Order
From the approved purchase order's detail page, click Add Payment. Make sure the order has no received or invoice dates applied.
Add the required deposit Amount and select the purchase deposit from the Payment Method. Click Submit to add the payment.
The deposit will be applied the purchase order, which remains an approved, un-received, un-costed order. Apply additional deposit payments via the same process if required.
The deposit payment is queued to send to Xero. Send the deposit through to Xero to reconcile your deposit payment by clicking Send Purchase Orders from the Xero dashboard (Accounting -> Xero).
A draft bill containing the deposit amount will be sent through to Xero to be approved, and reconciled against your deposit payment to the supplier. Note the bill reference is the workguru order number and the date the deposit has been applied.
When you receive the products ordered and/or the supplier invoice, fully receive and cost the purchase order as per normal. The final invoiced purchase order will be queued ready to import to Xero. Send the order through to Xero to reconcile the remaining invoice balance by clicking Send Purchase Orders from the Xero dashboard (Accounting -> Xero).
As WorkGuru knows the finalised purchase order has a deposit payment applied, it will be sent to Xero as an approved bill.
WorkGuru will automatically create a credit note to journal the deposit value from the asset account and apply it to the bill leaving the correct amount remaining to reconcile.
