This article describes how to create a prepayment for a vendor from a payment journal. You can also choose to do the prepayment from the purchase order, in this case go to this article: vendor prepayment.
The creation of a prepayment from a payment journal is done in 3 steps:
- Step 1: Create the payment journal for the prepayment,
- Step 2: Post the vendor invoice,
- Step 3: Link the prepayment to the invoice,
1/ Create a payment journal
Access: AP > Journals > Payment journal
- Create a new journal.
- Check in the tab “Setup” if amount includes sales tax (select the option you need)/
- Click on “Line” button
- Select the vendor account
- Enter the amount of the prepayment
- Select the offset account (bank account)
- In the tab “Payment” select Prepayment journal voucher. The posting profile of the vendor is automatically updated.
- Enter other informations you need.
- Send the payment (depends of the setup of the method).
- Post the journal.
- In my case, the prepayment is with sales taxes.
2/ Vendor invoice
There is no specific transaction to do in the vendor invoice. Just post the invoice as the regular way (invoice from purchase order or invoice journal).
3/ Link the prepayment to the invoice
The last step befor paying the vendor invoice, is to settle the prepayment with the invoice.
Access : AP > Common > Vendors > All vendor.
- Select the vendor
- Click on Settle open transaction
- Select the prepayment transaction and the invoice
- Click on “Update”
- When you will pay the invoice, only the amount minus the prepayment will be available to the payment.