cancellation of prepayment invoice procedure

sunka_sathish8687 · 2012-02-22

Dear All,

If I cancel prepayment invoice it will show debit balance in prepayment account ,when i post purchase order the account will get zero and remaining amount to party account gets credited,

If i want cancel to prepayment invoice
what is the procedure ?

please help me out

Alex_Chow · 2012-02-22

Post a prepayment credit memo.

sunka_sathish8687 · 2012-02-23

Thank u Alex Chow for ur reply,

i want to know that in detail like,
if we post prepayment invoice From purchase order Eg;Invoice value 100000 and prepayment 10% I.e 1000 it will show credit to vendor party account and debit to prepayment account as we define in general posting group account

When we pay that 1000 amount through bank payment voucher it will show debit to party account and it will come to zero, and prepayment debit balance will be the same , if i post these purchase order it will become zero ,

if they not post these purchase order it will remain debit balance in the account,

at these time they want trail balance, it will show debit balance
trail balance will not match ,if they post it is ok if not what will be the solution

please help me these accounting part in brief .....

Regards

sathish kumar

ssingla · 2012-02-23

Rest assured the Trial balance will match because all the entries will have equal debit and credit balance.

sunka_sathish8687 wrote:

if they not post these purchase order it will remain debit balance in the account,

at these time they want trail balance, it will show debit balance

Equal balance/amount will show in Bank/Cash account from which the vendor has been paid off.

cancellation of prepayment invoice procedure

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