I have a client who just started using prepayments in POP. They enabled the prepayment option in POP setup and set the Prepayment account to be their Cash account. So when they printed the check, the distribution was an in and out of the cash account. I have researched PO prepayments on the web and several of the demos show using the cash account. There is no real guidance in the GP documentation about what type of account to use.
The problem comes in when the prepayment amount is the same as the PO amount, but when the invoice is received, it is less than the PO amount. When the invoice is posted, the amount of the invoice is posted to the cash account. So now, they have a check that is partially applied and their is no GL effect for it for the amount that is not applied.
I was just wondering if anyone else has had this happen and if so, how did you correct it? I am considering just entering a GJ for the unapplied amount of the check which will debit AP and credit Cash. Or, maybe voiding the check and reenter it for the correct amount. Thanks! Just want some additional insight.
