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Evo-ERP and DBA Classic >> Manufacturing >> Payment in advance
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Message started by LisaG815 on 04/14/08 at 08:19:01

Title: Payment in advance
Post by LisaG815 on 04/14/08 at 08:19:01

We have a vendor that requires payment in advance. The problem is the item purchased is an inventory item that will not be received for approximately a month after payment is remitted. Since we are still on version 2004.1, we're looking for the best procedure to handle this. By doing a manual voucher to do the advance payment, we leave the receipt of the purchase order hanging forever on the PO received not invoiced report. Any options we're missing?

Lisa @ Polymer Molding, Inc.

Title: Re: Payment in advance
Post by wildco on 04/15/08 at 10:02:30

We have this situation occur frquently.

Our solution was to create a checking account called "Prepaid Goods Not Received"

We normally wire payment to our vendors that require prepayment, so we use the Transfer Bank Account Funds key, but you could simply create a AP voucher against the prepaid goods not received account.

Then, when we receive the goods, we invoice them using AP-C but make it a COD rather than an invoice, and select the prepaid goods not received as the bank account.

Finally, the accounts can be reconciled to 0. The advantage to this approach is that you never lose track of a payment (which we had done in the past).

Title: Re: Payment in advance
Post by LisaG815 on 04/15/08 at 10:28:46

Thanks, Aaron. We'll try that out in our test company and see if that will work for our situation. Sure sounds like it will.

Lisa

Title: Re: Payment in advance
Post by LisaG815 on 04/15/08 at 14:02:28

It works great! Thanks so much for your help!! ;D