Writing a Prepayment Check
In order to send a prepayment to a vendor, follow the steps below. Once the order is received (See Receipt of Goods for more information), and invoiced, please refer to “Applying a Prepayment to a Vendor Invoice” for information on how to apply the prepayment.
1) Select Accounts Payable Main menu > Manual Check Entry.
2) In the Manual Check Entry window, enter the Bank Code and click on the printer button to prompt you to print the check after the information has been entered.
3) At the Check Date and Check Amount fields, enter the date and amount of the prepayment.
4) At the Vendor No. field, enter the vendor receiving the prepayment.
5) Click the Lines tab and at the Invoice No. field, enter an invoice number that can identify the prepayment. You can enter PP followed by the payment date in YYMMDD format or the Purchase Order #.
6) At the Invoice Amt field, enter the amount of the prepayment. The General Ledger Distribution window appears.
In the General Ledger Distribution window, enter the G/L Account and Amount fields to distribute the prepayment amount. Enter GL Number 14900 for Security Deposit and Prepayments
** If the prepayment is a deposit for an asset purchase, enter the deposit account at the G/L Account field. Do not apply prepayment amounts for assets to the asset account until the invoice is received.
7) Click Accept
8) In the Manual Check Entry window, click Accept.
9) Print the prepayment check. Print and update the Manual Check Register.
Prepayment check is created and recorded.