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Evo-ERP and DBA Classic >> Accounting >> PO WITH PREPAYMENT TERM
http://www.istechforum.com/YaBB.pl?num=1089326679

Message started by wtsconnects on 07/08/04 at 14:44:39

Title: PO WITH PREPAYMENT TERM
Post by wtsconnects on 07/08/04 at 14:44:39

We have a PO with a vendor which requires a prepayment before goods are delivered. Do we need to receive the goods in before actual delivery in order to pay on the PO? There must be a more correct way of handling this.

Any advise is appreciated.

Thanks

Title: Re: PO WITH PREPAYMENT TERM
Post by aricon on 07/08/04 at 14:57:00

Create an AP Voucher for the amount of the pre-payment and process a cheque from the voucher.

Title: Re: PO WITH PREPAYMENT TERM
Post by wtsconnects on 07/08/04 at 15:09:35

I've done that in the past. Then when we receive the goods in we'll have a payable for which I will then need to create a credit voucher for to clear it. Is this the only way? I was hoping we missed a process with fewer steps.

Title: Re: PO WITH PREPAYMENT TERM
Post by RAGINE on 07/08/04 at 15:16:48

Search the archives(Advanced Payment on PO), I know I had this problem, but can't remember what I was advised to do, but it worked :)

Ragine

Title: Re: PO WITH PREPAYMENT TERM
Post by wtsconnects on 07/08/04 at 16:30:36

Thanks. I did a quick search prior to starting this post. I'll look again.

Title: Re: PO WITH PREPAYMENT TERM
Post by Lynn Pantic on 07/08/04 at 16:48:41

I know I have posted this before but I tried a search on several keywords and came up empty so here it is again. And for future searches - ADVANCE PAYMENT or PREPAYMENT or DEPOSIT on PURCHASE ORDER.

1. Create a type N part number called prepayment.
2. Add 2 lines to the purchase order, one for a positive quantity and one for a negative quantity of prepayment for the amount of the deposit so the net total of the PO is unchanged.
3. Receive the positive line, process through AP and cut a check using a dummy vendor invoice number.
4. When the actual parts are received, receive the parts and the negative deposit line so the correct net balance due passes to AP for payment.

Title: Re: PO WITH PREPAYMENT TERM
Post by wtsconnects on 07/08/04 at 16:53:10

thank you so much. ;D

Title: Re: PO WITH PREPAYMENT TERM
Post by wtsconnects on 07/08/04 at 16:56:05

P.S. We have started a folder for Forum notes and save the print page on relevant issues/discussions so that we can refer to them easily in the future.

Title: Re: PO WITH PREPAYMENT TERM
Post by aricon on 07/09/04 at 07:42:59

Not sure this is any less effort than just doing an AP Voucher, but if you like it better, than great! :)

Title: Re: PO WITH PREPAYMENT TERM
Post by Lynn Pantic on 07/09/04 at 10:08:25

Not less effort but it ensures the prepayment is associated with the PO and you don't pay in full when the parts are received. Paying by voucher retains no record on the PO or with the vendor that you have prepaid against the parts.

Title: Re: PO WITH PREPAYMENT TERM
Post by aricon on 07/09/04 at 14:36:37

Ah yes, grasshopper....good point! ;D