Creating a Vendor Deposit or Prepayment
During the course of your general operation you may encounter a situation where you need to send a deposit to a vendor. In Big Business terms, this means that you will need to generate a check for a vendor without having a final invoice (Bill) from the Vendor.
This Solution outlines the steps you should take in order to create a Vendor Deposit or Pre-Payment, while maintaining the integrity of the accounting system. (5000)
To prepay a Vendor, or issue a deposit, you need to create a Vendor Bill to pay and a Credit to be used against the Vendor's final invoice.
To create a Bill to prepay a Vendor:
1. Go to the Vendor Toolbar and open the Miscellaneous Bills tool.
2. Create a Misc. Bill for the amount of the prepayment you wish to send.
3. Create a Credit (negative Misc. Bill) using the negative of the amount above.
TIP: To include the prepayment in the next Check Run enter a Sched. Date on or before the next Check Run. To exclude the Credit (negative Bill) from the Check Run enter a Sched. Date AFTER the next Check Run.
To create a Check:
1. Open the Make a Payment tool and select the Vendor.
2. Enter "To Pay" amounts so that only the "deposit" is being paid.
3. Confirm the amount of the check (in the green arrow) and write or print the check.
The Credit (negative Bill) remains, tracking the prepayment you have sent to the Vendor. By default, a Credit does not have a Sched. Date, so it will be automatically selected the next time you pay the Vendor.
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