Handling Deposits

How does your company handle deposits to a suppler?  Do you enter the deposit on the PO and Accounts Payable matches the voucher or are they handled through Accounts Payable?

Thank you Wendy
for your reply to my question on the Quest website.

Have a good
day!

Tammy M.
Blose

Purchasing
Manager

Milton Hershey
School

1201 Homestead
Lane (Shipping)

P.O. Box 830
(Mailing)

Hershey, PA
17033

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Hi Tammy,

We have a reel deposit for some of the cable we purchase. I believe right now the supplier is invoicing us for the deposit. The payment terms are something like net 360, typically we sent the reel back before the invoice is due and the supplier sends an offsetting credit.

The problem that I think we encounter is just managing all the reels and supplier sending the credit when we return the reel. There could be other issues, I've heard the process is not without issues. Right now I don't believe there's any reference to the reel deposit on the PO.

Thanks,

Wendy