Non-Cash Deposits
When an account is required to post a deposit, they can remit cash or some other type of surety (e.g., letters of credit, surety bonds, 3 rd party deposits). When cash is remitted, a deposit service agreement is used. When some other type of surety is used, a non-cash deposit must be created.
Non-cash deposits are held in respect of an account and an account may have an unlimited number of non-cash deposits (note: cash deposits are held in respect of a deposit service agreement that is linked to remitting account). Refer to Account - Deposits for more information.
Each non-cash deposit must reference a non-cash deposit type. Besides defining the type of surety, the non-cash deposit type also controls:
- Whether such types of non-cash deposits can be highlighted when they are due to expire via the creation of a To Do entry (refer to TD-NCDEX for more information about this To Do entry).
- Whether a reference to a cash-deposit (i.e., service agreement) must be specified. Refer to 3rd Party Deposits for more information about how a cash deposit can be referenced by another party.
Refer to Setting Up Non-Cash Deposit Types for more information.
In addition to non-cash deposit type, each non-cash deposit must reference a deposit class. Why? Because the system amalgamates cash and non-cash deposits when it determines if an account is holding an adequate deposit.
Refer to What Do Deposit Classes Do? for more information.
If you need to use a non-cash deposit to satisfy an account's debt, you must "cash in" the non-cash deposit. When the cash arrives, create a payment and apply it to the customer's outstanding service agreements.