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Entering Vendor Prepayments

Thu, 17 Jun 2010 05:09:29 GMT

When it comes to processing a vendor prepayment or down payment, GP is a little weak. GP allows entering a customer prepayment on a sales order, but there is no similar function when entering a purchase order. However, there is a relatively simple work-around to this issue.

To enter a vendor prepayment and print the prepayment check, go Transactions>Purchasing>Edit Check (no, this is not intuitive but that's where the functionality resides). Enter the Payment Number (or accept the default), Batch ID, Vendor ID, and Apply Date (or accept the default). Enter a comment if desired, the Unapplied Amount, and make your Remittance selections. Click on the Print Checks button, enter the Check Number (or accept the default), the Check Date, and a Check Comment, if desired. Check the Distributions to make sure the check is posted to the desired accounts. Click the Print button to print your check, then post the check using the Post Payables Checks window that opens.

This process will print the prepayment check and post a payment to the vendor account which can later be applied to the vendor invoice after it is posted. To aid in remembering that the prepayment was made, enter a reminder detailing the vendor, PO number and check number and assign it to the person responsible for check processing.

Weekly Review: AP Prepayments in Dynamics GP

Thu, 19 Aug 2010 15:01:13 GMT

The question "How do I cut a check for a prepayment/deposit when there's no invoice yet?" comes up quite a bit. So we'll take a quick look at this today.

Scenarios for this include prepayments, deposits, down payments, etc. where you have to put up cash today but might not see an invoice until later. Most folks go to Transactions-Purchasing-Transaction entry and then get stuck.

In v9.0 and up you have 2 options.
1) Cut a Miscellaneous check using Tranactions-Financial-Miscellaneous Check. But this can create problems when the transaction is incomplete. Maybe you'll get an invoice later for 1st months rent and your deposit so you want to apply the deposit to make that invoice right.
The traditional (and better) option is to:
2) Use Transaction-Purchasing-Edit Check. This is the same window you use to adjust amounts in check batches, but instead, just enter the information necessary for your prepayment.
Cut the check as it's own batch or as part of a larger check run. You end up with a credit in AP (to offset the coming invoice) and a debit to the appropriate account (deposits, expense, etc.). Just don't apply the check to any existing invoices. In fact, don't apply it to anything.

That's all there is to it and if you know how to cut regular AP checks it's a snap.

Originally posted by Mark at 10/19/2007 01:18:00 PM

Weekly Dynamic: Prepayments

Mon, 21 Jun 2010 18:11:22 GMT

The question "How do I cut a check for a prepayment/deposit when there's no invoice yet?" comes up quite a bit. So we'll take a quick look at this today.

Scenarios for this include prepayments, deposits, down payments, etc. where you have to put up cash today but might not see an invoice until later. Most folks go to Transactions-Purchasing-Transaction entry and then get stuck.

In v9.0 and up you have 2 options.

1) Cut a Miscellaneous check using Tranactions-Financial-Miscellaneous Check. But this can create problems when the transaction is incomplete. Maybe you'll get an invoice later for 1st months rent and your deposit so you want to apply the deposit to make that invoice right.

The traditional (and better) option is to:

2) Use Transaction-Purchasing-Edit Check. This is the same window you use to adjust amounts in check batches, but instead, just enter the information necessary for your prepayment.

Cut the check as it's own batch or as part of a larger check run. You end up with a credit in AP (to offset the coming invoice) and a debit to the appropriate account (deposits, expense, etc.). Just don't apply the check to any existing invoices. In fact, don't apply it to anything.

That's all there is to it and if you know how to cut regular AP checks it's a snap.

Frank Hamelly on Entering Vendor Prepayments

Thu, 17 Jun 2010 18:13:03 GMT

Fellow MVP Frank Hamelly addresses a concrete day to day business issue: how to enter prepayments for vendors in GP. While it's very simple to record prepayments for customers in the Sales series, it is not always as straight forward in the Purchasing series. Take a look at Frank's article and let him know what you think.

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/