My partner and I have just started a travel business. One of the programs we offer to our customers is the saving plan. They would save monthly for 12, 24 or 36-month. Once they have reached the amount for trip, the money saved will be paid it. I wonder how do we record this saving program using Manager. Should we use Credit Note as the saving? Or anyone could advice us on how work around this in Manager and what are the steps. Thank you.
THe simplest way is to set up a Customer account for the customer. When you receive the monthly payment, use the Receive Money transaction and allocate the amount to Accounts Receivable/customer.
This will show up as a negative balance on the customer’s account. No further entries are required until you invoice the customer for the holiday cost in 12, 24 or 36 months time.
It might be clearer to setup a separate special account to keep track of the customer’s savings as explained in this [guide] but that’s a matter of choice.(Manager Cloud)
Create the customers on savings plans and allocate the amounts received to Accounts Receivable and select the customer. The customer balance will show the amount prepaid.
Assuming most of your customers will be on savings plans, you have the option to change the name of Accounts Receivable to Customer Advance Payments and recategorize the account from an asset to a liability.
When customers are ready to use the amounts in credit for travel you can issue a Sales Invoice to offset the credit balance.
If you have both savings plan and invoiced customers then you could have a separate control account for each group. The existing Accounts Receivable for the invoiced customers and a separate control account for the savings plan customers.
I’m with Brucanna on this one - it’s a bit more effort to setup but will provide a clearer account of the positions.