Payments in advance

we do something similar, but with deposits.

We create a PO for goods. We add a line to G/L accounts deposits - inventory, qty = 1, unit price = deposit due. We post that receipt (creating an invoice for the amount of the deposit).

When the real invoice shows up, we add a G/L line to deposits inventory, qty = 1, unit price = negative deposit amount (to net the original deposit to zero in the deposit account). We post the receipt and the negative line reduces the remaining amount due such that the PI is only for the remaining balance due the vendor.

Why not just cut a manual check and apply it later?

ssingla wrote:

From a Accountants/Auditors view :

How the detail of Advances as on a given date be obtained Vendor wise. :?:

:-k :-k

the entry in the deposit g/l account can be tied to a vendor at a specific time...maybe i misunderstand you? The financial statements also show a column for inventory deposits, so that is all accounted for.

it does work. maybe not as well as other solutions, but gets the job done.

We create a PO for goods. We add a line to G/L accounts deposits - inventory, qty = 1, unit price = deposit due. We post that receipt (creating an invoice for the amount of the deposit).

When the real invoice shows up, we add a G/L line to deposits inventory, qty = 1, unit price = negative deposit amount (to net the original deposit to zero in the deposit account). We post the receipt and the negative line reduces the remaining amount due such that the PI is only for the remaining balance due the vendor.

This may look like a temp. solution but it serve the purpose. However there are few informations which we may not get.

In my opinion from a PO a function should be called to issue the advance to the vendor which will lead to the g/l entry. In this way we can get a details of vendorwise and PO wise advances.

Hi,

Make Payment to the vendor by using Payment journal.

Apply afterwards.