There is a designated place in Registration Module dedicated to Registration Deposits. Registration Deposit is any deposit that is paid to the Vendor for registration, usually in India, and includes the cost of documents and samples (if required). Registration Deposit can be refundable, non-refundable, and partially refundable. Usually Registration Deposit will be refunded by Vendor at the time of commercial order after registration is completed, which might take up to 1-2 years, therefore cannot be recorded through Accounting books as it is not an immediate transaction.
Due to inability of Accounting Dept. to record the Registration Deposit refund, Purchasing Person must record this deposit and refund amount due by creating a Registration Deposit document in the ERP. In the future, once there is an order after registration is completed, the System will send a notification reminder to Purchasing Person of existing Registration Deposit which is pending to be refunded. That way, the refund due will not be missed or forgotten.
How to create Registration Deposit
1. Locate Registration Module.
2. On top menu bar, find and click 'Overview', then choose 'Registration Deposit' in the dropdown.
3. Click 'CREATE'.
4. In the new document fill out the following fields:
4.1 'Vendor' field: choose the required Vendor from the dropdown after typing the first letter of the Vendor name.
4.2 'Sales Order' filed: type the name of the order reference and choose the correct one from the dropdown. SO number must be the same as the registration task reference number. Sub-SO field will be auto-filled based on selected main SO number.
4.3 'Registration Agreement' filed: the System will suggest the Registration Agreement reference based on selected SO number. Registration Agreement refers to a document that reflects the Vendor and products under registration, as well as required documents and status of registration. This field is mandatory to fill out. Usually there is only one Registration Agreement for the combination Vendor + Sales Order, but if there is more than one Purchasing Person can confirm the Registration Agreement reference number with Purchasing Dept. Manager.
4.4 'Currency' filed: default currency is USD, but can be manually changed to CNY or other.
5. After filling out the basic information, Purchasing Person must fill out the details related to the amount and mark the terms of the refund:
5.1 'Refundable' field: choose whether the deposit is refundable. If the deposit is not refundable, there is no need to create Registration Deposit. Choose the option 'All' if full amount is to be refunded, and 'Partially Refundable' if only a part of the Deposit is refundable.
5.2 'Total Amount' filed: is visible only when the Deposit is Partially Refundable. Add total Deposit amount due to be paid to the Vendor, for example, 1,000.00 USD.
5.3 'Refundable Amount' filed: is visible only when the Deposit is Partially Refundable. Add refundable amount of the Deposit, in other words, the amount due to be refunded in the future, for example, 900.00 USD (out of total 1,000.00 USD).
5.4 'Terms' filed: must be filled out for both fully refundable and partially refundable deposits. The Terms must contain information about when the deposit will be refunded, for example "the refund is due in full final payment of the first order." or "the refund will be refunded in 3 consecutive orders." or other terms. The terms must be as detailed as possible.
6. After filling out the amount details, Purchasing Person must add the products below, in 'Products' tab. 'Products' tab must include all the products the Deposit is related to, along with the details of the amount per product and description containing the purpose of the Deposit (what AdvaCare is paying for).
6.1 Click 'Select from RA' to add products under registration. The button will show the list of pre-selected products based on previously added Registration Agreement reference number. Use the select icon to choose one or all products from the suggested list, then click 'SELECT' to add the products to the Deposit list.
6.2 Once the products are added to 'Products' tab, fill out 'Description' field. Description field must contain details of the deposit, what the payment is for, for example 'Dossier + samples (50 boxes)', or 'Dossier + COPP', or 'Samples (50 boxes)', or other. Description must be as detailed as possible.
6.3 Fill out 'Unit Price' field to show total amount of the deposit per product, for example 500.00 USD.
6.4 Fill out the same details (Description, Unit Price) for all products in the 'Products' tab.
6.5 Make sure the total amount in 'Products' tab is calculated correctly and matches total Deposit amount.
7. Save the Deposit.
8. Move the Deposit into 'Pending' stage on top right of the document.
9. If payment to Vendor for the Deposit is due at this point, Purchasing Person must create a bill for Accounting to make the payment. Click 'CREATE BILL' on top of the screen.
10. In the newly created bill fill out 'Accounting Representative' in 'Other Info' tab and choose Accounting Dept. Manager. Save the bill, but don't validate it.
11. Send a task to Purchasing Dept. Manager to make the payment to the Vendor in the amount of X for registration deposit, inform Purchasing Dept. Manager that Registration Deposit and relevant bill were created.
12. After registration is completed, and the same combination of Customer, Country, Vendor, Product and Packaging is used in the PO, the System will send Purchasing Person a notification of the pending deposit refund.
13. Once notification is received, include the amount of refund due into PAYMENT TO FACTORIES file of the order. Inform Accounting Dept. via task of the amount due and inform which payment it will be deducted from (advance payment and balance payment).
14. Make sure the amount due is deducted from the order amount. Once the refund is paid, find the relative Registration Deposit in the System and move to another stage. If the deposit is fully refunded, move Registration Deposit into 'REFUNDED' stage. If the deposit is partially refunded, move Registration Deposit into 'PARTIALLY REFUNDED' stage, and record the remaining amount in the field 'Amount Due' that appears in 'PARTIALLY REFUNDED' stage. Move Registration Deposit into 'REFUNDED' stage only after full amount due is refunded in full.
