Prepayments on Vendor Accounts

The program can now track prepayments made to vendors and apply prepaid balances against invoices that you are paying when entering a Payable Check to a vendor.

To enable the prepayment feature:

1. Create a General Ledger (G/L) account to which your prepayments will be posted.  (You may also create multiple accounts for use by different vendor classes if needed.)

2. Enter the prepayment general ledger account number under Tools > Program Setup > General Ledger > Account Numbers.  If you create different G/L accounts for prepayment each vendor class, go to Payables > Setup > Vendor Class Setup and enter the account numbers for each class there.

3. To issue a prepayment to a vendor, write a direct expense check or enter a vendor invoice using the prepayment G/L account.

4. When a prepayment G/L account is used, the program will automatically add the amount to the vendor prepayment balance.  You can view the prepayment balance on a vendor account on the Vendor setup window on the 1099’s/EDD542 tab page. The prepayment balance will also appear on the Vendor Account Inquiry window.

5. When you write a payables check to a vendor with a prepayment balance using the Payables Check button in the Checkbook Register window, the prepayment balance will appear at the bottom of the Select Invoices to Pay window.  Next to the balance, you will see the Amount to Use entry.  Enter the amount of the prepayment that you want to apply on the check after selecting the invoices.  The check total will be reduced by that amount.

The Accounts Payable Aging Report now includes an option to print the Prepayment Balance on the report.  If this option is selected, the program will print the total of the invoices on each account, then print the prepayment balance on the next line, and finally print the new due to the vendor on the next line.  At the end of the report, the total of all of the prepayment balances on all vendors will be printed, then the Report Total less the prepayment balances.