PREPAYMENT TO VENDOR USING A CREDIT CARD

For proper accounting, you will need a 2000 series liability account for the Credit Card, and a 1000 series asset account for Prepayments to Vendors.

The 2000 Account for Credit Cards should be defined as a Credit Card Account, under Maintenance > Banks/Credit Cards.

to make a Prepayment:
Menus > Checks
Select the Credit Card Account
Insert the Credit Card transaction (on the “check” window)
Pay to the Vendor
Expense Category is the 1000 series Prepayments to Vendors
Enter amount, Click OK.

Enter a Warning Message on the Vendor window as a reminder of the prepaid amount and date.

to apply a Prepayment:
Insert a Payable.
Post the Payable.
Click Adjust A/P
Credit Amount is the Prepaid amount
Offset Account is the 1000 series Prepayments to Vendors
Apply the prepayment amount.
Click OK to process.

Remove the warning message on the Vendor window.

Partial amounts can be applied if the prepayment covers more than 1 Payable.

See User Guide #280 for more information on setting up Credit Card Accounts.

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