Credit Purchase – Security Deposit

The management of supplier deposits and advances enables the company to record and track amounts paid to suppliers when ordering goods or services, while ensuring clear and compliant accounting.
It provides accurate tracking of amounts paid, refunded, or allocated to invoices, and generates detailed reports on all transactions related to these deposits.
• Real estate rental
• Equipment rental
• Other

Example
As part of an equipment order, a deposit of 5,000 is paid to the supplier upon signing the purchase order:
The amount is recorded in a supplier deposit account / liability account
It is not subject to VAT at the time of payment
It is not posted to the purchase account until delivery takes place

Upon delivery or final invoice:
The deposit is deducted from the total amount due
If the deposit exceeds the final invoice, the balance may be refunded by the supplier
If the deposit is lower, the remaining amount is invoiced as usual

The system clearly distinguishes between supplier advances and actual purchases, ensuring reliable and transparent accounting.