Paid Deposit - received invoice for remaining product - how to process
The company required a deposit in advance so we cut a check. We then created a PO for full amount and are now trying to receive product and pay remaining balance. How do we do this? n Thanks in advance
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Good afternoon Coleen Burgess,
Thank you for your query.
Our recommendation is:
- Set up a rate that is coded directly to the Deposit account that was used to pay the original deposit (similar to how Use Tax, Prepaid, etc. rates are configured)
- When receiving, add the rate as a negative value
This will:
- reduce the payable owed to the supplier by the amount of the deposit
- post the full value of the receiving to the expense account
- balance/offset the original deposit amount on the balance sheet when the A/P export is posted to the finance system
We have received this query from other customers recently also & will be publishing an article soon-- I will update this post when it is available.
Please let us know if the above helps or if you have any follow-up questions on this topic.
Best
David
Fourth
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