Enter a Prepayment to a Vendor

To enter a prepayment made to a vendor:

1. Open the Payments window for purchase invoices. How?
   1. In the Home window, click Vendors & Purchases on the navigation pane.
   2. In the Tasks pane, right-click the Payments icon and select Pay Purchase Invoices from the menu.
2. Click the Prepayments toolbar button .
3. Provide the prepayment details.

   In this area:	Enter the following information:
   By	Select a payment method from the list.
   From	If you are paying by cash or cheque, select the bank account from which the money will be taken.
   To the Order of	Select the vendor that you are paying.
   Cheque No.	If you are paying by cheque, type your cheque number.
   Date	Enter the date on which you make the prepayment. This date is printed on the cheque and is also recorded as the transaction date.
   Prepayment Reference No.	Type a reference number for the prepayment.
   Prepayment Amount	Type the amount of the prepayment.
   Comment	Type the reason for the prepayment.

4. To print the cheque, click Print on the toolbar, or select Print from the File menu.
5. Click Process.  

This is your first step to record the prepayment as seen above from the Sage 50 help files.

Once you have entered it you will see in your Vendor Aged Detail Report the prepayment. Once the invoice is received from the Vendor enter the Invoice in Payables for the Vendor. To apply the prepayment open the Payments journal in Payables and the Invoice you entered is there and also the prepayment. You can either apply the entire amount to the invoice and print a cheque for the amount still owing or if the amount owing and prepayment are the same just apply the amount.

Hope this helps

Jo Anne

Hello Jo Anne,

This helped immensely! I have now recorded the prepayment into the system and can see it plus the invoice in the payment journal screen.

It is not clear to me how to apply the prepayment to the invoice. When I open the payment journal the first line across the top reads:

"pay purchase invoice"  "By" Cash, Cheque, Direct Deposit "From" 1060 Chequing Bank Account

It does not allow me to change any of these to use the prepayment amount. I have $500 in the prepaid account and want to apply $100 to the invoice.

I really appreciate your time and help,

Jennifer

Here is a screenshot of how the Payment Window will look once you have chosen the Vendor you have recorded/booked a prepayment to:

This is a screenshot of how the journal entry would look for the above entry:

Hope this makes it clearer.

Jo Anne

Here is a screenshot of how the Payment Window will look once you have chosen the Vendor you have recorded/booked a prepayment to:

This is a screenshot of how the journal entry would look for the above entry:

Hope this makes it clearer.

Jo Anne

Thank you so much Jo Anne this has answered my question.