Prepayments

Intro – Prepayment #

Use Prepayment to record a deposit or upfront payment required by a vendor before delivering products or services.

• Prepayment is a posting transaction but do not update inventory status.

Create a Prepayment #

• Go to Purchase on the left sidebar, and select Prepayments
• Click Add New button in the top right corner.
• On the new payment page, fill in the following fields
  • Payment number is an auto generated number.
  • Date: default pay date is today.
  • Vendor: Select a vendor from the vendor list. This is a required field.
  • Payee: Enter payee’s name.
  • Payment Method: Cash, Check, EFT or others. You may add new method in Accounts -> Payment Methods.
  • Description. Maximum characters: 4096.
  • Draft: Select this option to save the payment as a draft.
  • Amount Paid: Required field.
  • Currency: The transaction’s currency is automatically filled with the value defined in the vendor’s record.

• • Account tab
    • Cash/Bank Account:  Select which account to use for payment.
    • Prepaid Account: Prepayments are treated as current assets of the company and are tracked in the prepaid account.
    • Expense Account: for cash basis accounting.

• • Vendor Address tab
    • All address and contact fields are auto filled when vendor field is selected.

• Click Save