Prepaying A Purchase Order

Overview

Sometimes the vendor would like to be paid before delivery, and this is where a problem resides as I might be able to link a standalone check to a PO, resulting in an open bill although it has been paid. This document is for accountants who do not usually deal with PO’s, outlining how to overcome such an issue.

Prepaying PO w/ Check

After a PO has been created from the top icon menu select “Open” using the Object Browser, search for the PO and open it.

• Select the Summary Tab

• Next, click on the Deposit Button, and the Pay Deposit screen will appear.

Now, this is just like issuing a regular check, yet in this scenario, the vendor and order are linked. Verify and fill in the proper information:

• Verify the correct Bank Account has been selected

• Batch Number is applicable (which you can auto-generate using the button next to it)

• If you have a specific check number, if not allow the next queue check number to populate automatically.

• In the Memo Field, enter any reference information needed.

Under the Expense section, the default Ledger Account will appear as Vendor Deposits (if you need to change this select the ledger account here), if not leave as is. Next, enter the amount of the order or the amount of the required pre-payment.

Once completed, select “Save and Close” and the check will be queued to be printed within Send Documents under Accounting. Once the check has been printed it is ready to be sent to the Vendor. If you made a prepayment that did not cover the entire purchase order amount you will follow the normal procedure to pay the balance.