How to apply prepayments to purchase orders
Resolution
Use the Less Prepaid Amount field on the Totals tab in Purchase Order Entry. The total invoice amount is reduced by the amount of the prepayment.
Note: Prepayments can also be entered in Receipt of Invoice Entry.
- Verify the payable deposit account.
- Expand Modules, Purchase Order, and Setup.
- Double-click Purchase Order Options.
- Click the Additional tab and verify that the account number in the Payable Deposit Account field is correct.
- Create a prepayment check in Accounts Payable using either of the following procedures: (see Related resources)
Note: With either method, a debit is posted to the Payables Deposit account.- Create a prepayment invoice in Manual Check Entry.
- In the G/L Distributions window, select the Payable Deposit account.
- Create a manual check using G/L distribution only.
- In the G/L Distributions window, select the Payable Deposit account.
- Create a prepayment invoice in Manual Check Entry.
- Enter the prepayment to the purchase order.
- Expand Purchase Order and Main.
- Double-click Purchase Order Entry, and select the purchase order to be prepaid.
- Click the Totals tab, and enter the following:
- Less Prepaid Amount = Prepayment amount.
- Prepayment Check Number = Check number
- Accept the entry.
- Process the receipt of invoice. The total invoice amount is reduced by the prepaid amount entered above.
- Update the registers. When the Daily Transaction Register is updated, the Payable Deposit account is credited for the prepaid amount instead of the Accounts Payable account.