Deposit Layers
The initial payment by the customer, the deposit, limits the customer to the number of containers that you enable for exchange without charging additional deposits. Container management stores each deposit that is received from a customer as a layer. Container management creates additional deposit layers when the customer takes delivery of containers exceeding the number that is allowed by the initial deposit.
For example, if a customer initially deposits 100,000.00 USD for 10,000 containers at a rate of 10.00 USD each and then takes delivery of 11,000 containers, you charge the customer for the 1,000 extra containers at the current deposit rate. When you receive the additional payment for the 1,000 containers, container management creates a new layer for the deposit.
Container management uses the first in/first out (FIFO) method of accounting to calculate refunds. With this method, container management depletes the oldest deposit layer first when issuing refunds. If the deposit rate for a customer changes, the rate that is used to calculate the refund is the rate that is used in the oldest, undepleted layer.
This example demonstrates how the system depletes deposit layers using the FIFO method for the period ending 02/28/05. In this case, you refund the deposit for the 3,000 containers from the earliest layer, which is the layer that was created on 01/01/00. This reduces the balance for that layer's deposit to 2,000 containers at 20.00 USD each.
This table displays the initial activity:
Description |
Quantity |
Rate (USD) |
Amount (USD) |
|---|---|---|---|
1-Jan-00 |
5,000 |
20.00 |
100,000.00 |
15-Dec-03 |
3,000 |
30.00 |
90,000.00 |
10-Feb-05 |
1,000 |
40.00 |
40,000.00 |
Opening Balance |
9,000 |
na |
230,000.00 |
This table displays deliveries and returns:
Description |
Quantity |
|---|---|
Quantity Delivered |
5,000 |
Quantity Returned |
8,000 |
Net Delivered/Returned |
–3,000 |
Closing Balance |
6,000 |
Based on this activity, the deposit is adjusted in this way:
Description |
Quantity |
Rate (USD) |
Amount (USD) |
|---|---|---|---|
Net Adjusted Deposit |
–3,000 |
20.00 |
(60,000.00) |
1-Jan-00 |
2,000 |
20.00 |
40,000.00 |
15-Dec-03 |
3,000 |
30.00 |
90,000.00 |
10-Feb-05 |
1,000 |
40.00 |
40,000.00 |
Closing Balance |
6,000 |
n/a |
170,000.00 |