12 Pre-Payments
From TrueERP wiki
Pre-Prepayments
When would you use a prepayment?
A Supplier Prepayment is a payment that you, the Customer, make in advance of receiving goods/services, and being invoiced for them. A Pre-payment will be allocated to the balance of the Supplier account within ERP ready to be assigned upon receipt of an invoice for the goods/service received.
How To Create a Supplier Pre-payment:
Select the Payments tab. Select Supplier Prepayment button. Select the Supplier from the drop-down list.
The Currency will default to the Supplier default, refer New Supplier for details. Enter the Prepayment amount Payment Date will default to the date of entry. Select a different date if required.
Select the Payment Method from the drop-down list. Enter the Reference, e.g. Chq Number. Department will default to that of the Employee logged in, or the Supplier if a department has been assigned to that Supplier.
Select the Bank Account the payment is to be made from. The Receipt #' will auto load as the next in sequence for your ERP database. Enter information regarding the prepayment into the Notes field.
Select the Add to EFT tick box if you are making the payment via on-line Bank Transfer. Refer to EFT for further instructions. Select Save to save and close the payment at this point.
How do you partially process a Supplier Prepayment?
Having already entered the prepayment into the system in the Supplier Prepayment Button as above Select Payments tab Then Supplier Payment Button
Select the Supplier The list of purchase orders/Prepayments etc will then show
Click onto the Payment amount column of the prepayment line entry and type in the amount that is to be applied Then select the Purchase Order the prepayment is to be applied to and either click on Apply if the amounts are the same or click on the amount column and enter the prepayment amount that is to be applied. Select Save
Do you understand how a Supplier Prepayment interacts with the Chart of Accounts and Balance Sheet?
When a supplier Prepayment is made this will show in the Chart of Accounts and Balance Sheet as an asset, as it is a payment in advance for goods that will be received, as you still own the money until the goods are received.
