Customer Deposits

All payments (deposited) on a folder are a Debit to Cash, Credit to Accounts Receivable. At the end of each month, a GL entry is recorded which reclassifies any payments on folders that are not yet invoiced for AR to customer deposits, i.e. a Debit to Accounts Receivable and Credit to Customer Deposits. The reclassification entry is dated the last day of the month and is reversed on the 1^st day of the following month. The entry is done every month end automatically.