Prepay a Vendor

Sage ERP Accpac Accounts Payable 6.0

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Prepay a Vendor

Overview

When you enter a prepayment, you can specify the document number, purchase order number, or sales order number to which the prepayment applies. Accounts Payable will use this number to match the posted prepayment to the invoice when it is posted. It is not necessary to supply a matching document number when you enter a prepayment, however.

You can also enter prepayments with invoices in the Invoice Entry form.

If Accounts Payable cannot match the invoice to the prepayment when the invoice is posted, you use an Apply Document transaction type to match them.

Activation date

Prepayments have a payment activation date — which is the date on which Accounts Payable considers the payment to be credited to the vendor account.

Prepayments are not used to calculate amounts due to vendors when you use the Create Payment Batch form until their activation dates.

Multicurrency ledgers

Note the following points regarding multicurrency prepayments:

  • All checks in a batch are in issued in the bank currency.
  • You enter the amount of a prepayment in the vendor's currency — even if the vendor's currency is different from the bank currency.
  • You can see the conversion from the vendor currency to the bank currency on the Rates Override form (click the Rates button on the Payment Entry form).

These steps are for adding a prepayment that you will apply later.

To add a prepayment:

  1. Open Accounts Payable > A/P Transactions > Payment Entry.

Click here for help with the fields on the Payment Entry form.

  1. Select an existing batch, or create a new batch.

    Use the navigation buttons or the Finder beside the Batch Number field to display the batch you want, or type the number in the field.

    Click the New () button beside the Batch Number field, then enter the batch date, bank code, default currency (in a multicurrency ledger), and deposit number.

  2. Click the New () button beside the Entry Number field, and in the adjacent field, enter a description for the payment, such as "Prepayment of PO 5664."
  3. Select Prepayment as the transaction type to record an advance to a vendor account.
  4. Fill in the remaining fields on the Payment Entry form:
  5. Payment Date (to appear on the check and for aging and statistical purposes)
  6. Posting Date
  7. Vendor number
  8. Remit-To (person or company to which the check is made out; use the zoom button or press F9 to change)
  9. Account Set
  10. Payment Code
  11. Print Check (option) (if you want to print the check from Accounts Payable; do not select if you have already issued the check)
  12. Depending on the payment type, enter the Check Number (if you are recording a manually written check. You cannot enter a number if you selected Print Check), check language, or a cash account.
  13. Check Language (for printing the amount only; edit the check form to change other aspects of the check)
  14. An optional reference for the prepayment
  15. Optional fields (if you use them)
  16. Vendor Amount (the amount of the prepayment)
  17. Apply By (used for matching the prepayment to an invoice).
  18. Apply To (You can manually enter a document number or click the finder to select a from a list of numbers. If you selected PO number in the Apply By field, you will be prompted to specify where you want to select the PO number from).
  19. Activation Date
  1. If the prepayment is job-related, select the Job Related field, then distribute the payment to particular jobs.
    1. Select the Job Related option.
    2. Click the Jobs button that becomes available.
    3. Use the form that appears to distribute amounts to the contracts, projects, categories, and resources for which you are making payment.
  2. When finished, click Add or Save.

After adding a prepayment

  • Print the Batch Listing. Correct entries, if necessary, then reprint the listing for each corrected batch.

You must print batch listings before posting if you select the Force Listing Of All Batches option on the Processing tab of the Options form. Once batches are correct, file the reports.

  • Select the Ready To Post option for each batch, or select each batch individually from the Payment Batch List form, then choose Yes when asked whether to choose the Ready To Post option.
  • Post the batch. You must also post the prepayment before you can apply it to the vendor's account. If any payment transactions cannot be posted, Accounts Payable will create a new batch containing the transactions with errors. See Printing checks and posting a payment batch.
  • Apply the prepayment to the vendor's account.

Additional information

  • When you click Add, Accounts Payable assigns a prepayment number to the prepayment. The number uses the prefix and next sequence number specified on the Numbering tab of the Options form.
  • You can also add a prepayment at the same time as you enter an invoice. See Invoice Entryfor more details.
  • If the bank or vendor does not use the functional currency and you need to change the exchange rate information for the prepayment, click the Rates button, then for each type of rate (bank and vendor):
  • Type the rate type code or select it from the Finder.
  • Type the exchange rate or select it from the Finder.

Note that the rates are for converting the bank currency or the vendor currency to your functional currency. If either of these currencies is the functional currency, the rate for that currency will be 1.0000000.

Related topics

Apply a Posted Prepayment or a Credit Note

 

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