Security Deposit from supplier

We take service from the supplier.
and we need to hold the purchase invoice amount for some years to secure the service.
Imagine, we take a Road construction service from a supplier. Which purchase invoice amount is 100$, then, we pay him 80$. and after one or two years we provide him the rest of the amount of 20$.

When we paid 80$, that time, we want the purchase invoice status is paid. after a fixed time (One or two years) purchase invoice should show 20$ is … some days overdue.
in this period, software should show the amount in liabilities sheets.

If the constructed road is broken or damaged, the supplier should fix it or we cut money from his security amount.

That’s not proper matching of expenses. What you need is not for the $20 to appear after 2 years. Instead, you need to record the full $100 and have 2 separate due dates.

The way to achieve this is to create two purchase invoices.

Later when you find problems and the contractor refuses to fix them, you incur the repair charges as usual and then create a zero valued payment to offset the $20 against a credit to the repair charges account.

I hope my phrasing isn’t too confusing.

In Manager’s terminology, the situation you describe is also not a security deposit from a supplier. There is no reason for a supplier to pay a security deposit to you. Customers pay deposits to you. You might pay deposits to suppliers in advance of receiving a service.

What you describe might be called a warranty reserve. It is still a liability of your company, but with a later due date than typical payables. So you might classify it as a long-term liability, depending on your policies and local accounting standards and practices.

I need it just like “Tick Mark on Withholding tax”
Please duplicate this feature, and rename with Security Advance.

What you request is not just like “Tick Mark on Withholding tax.” You are creating a much different form of liability, eventually due to your supplier, not a government tax authority. This is a highly specialized financial arrangement, not one followed throughout the world by a wide variety of businesses. I believe you should not expect it to appear as a feature of Manager.

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