How to Create Refundable Deduction for Refundable Deposit in i-Account

How to Create Refundable Deduction (Contra Maintenance) for Refundable Deposit in i-Account

Introduction

In the Banking and General Ledger module, there is a refundable deposit function to record and track refundable deposits in the system. After a certain period, the Management needs to issue a payment voucher to refund the deposits received from the owner. 

However, the Management can opt to deduct partial or full amount from the refundable deposit if the owner did not fulfill the criteria when claiming their refund or if the owner requests to contra the deposit amount with their monthly charge invoices (e.g. Maintenance Fee & Sinking Fund). The steps to create deduction for the refundable deposit are as below:

Process
Step 1
Go to Banking & General Ledger >  Transactions > Deposit Refunds and select the Owner name. 

Step 2
If the owner has an outstanding/ unrefunded deposit balance, it will be shown in the Deposit Refund listing. Allocate the refundable deposit in the This Allocation column. 


Step 3
Example:
  1. Renovation deposit refund amount = RM 6,000.
  2. Cleaning Fees deduction = RM1,000 (charged to the owner due to improper waste disposal).
  3. Enter Payment Amount = RM5,000 and Deduction/Withhold = RM1,000.
  4. The system will generate the appropriate GL entries and receipts.
  5. Thus, the “Payment Amount” which represents the exact amount being paid to the owner is RM 5,000 only.
  6. Additionally, management should proceed to issue a Cleaning Fees invoice later for the RM1,000 amount.

Follow the example as below to record the transactions:
  1. Refund Amount - Auto-filled based on total allocated for "This Allocation" in step 2 above.
  2. Payment Amount - Edit/ key in the actual amount being paid to the owner.
  3. Deduction/Withhold - Auto-filled based on Refund Amount - Payment Amount. Represents the amount deducted due to additional charges for damages/admin fee and etc. or due to a request to contra with maintenance.
Additional Note: The system will automatically create a Receipt document for the deduction amount.


Step 4
Click Process Refund to finalise the refund.


After processing, the system will automatically display options to:
• Print or email the Payment Voucher to the owner
• Print the Deduction/Withhold Receipt


Sample of Payment Voucher for Refundable Deposit:


Sample of Official Receipt for Deduction amount:



Note: If some of the screenshots or steps viewed here are different from the ones in the current system, this is due to our continuous effort to improve our system from time to time. Please notify us at info@timeteccloud.com, we will update it as soon as possible.

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