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Hi,
I am a new user of Microsft Dynamics GP. I have a question regarding adjustment of advances
to supplier in GP. I present the following case.
Suppose Po value is $ 100,000
and we need to pay 50% in advance and 50% after shipment delivery
First we book Invoice of Advance in vendor ledger
Advance $ 50,000
To supplier $ 50,000
After that we pay it
Supplier $ 50,000
To Bank $ 50,000
Now, when shipment is received,(and no Invoice received yet), we make
Inventory $ 100,000
Accrued Purchases $ 100,000
After receiving the invoice
Accrued purchases $100,000
To Supplier A/c $ 100,000
Now against this invoice of $ 100k, I apply 50% advance and 50% fresh payment
by booking a CRM with following distribution
Supplier A/c $ 50,000
Advances $ 50,000
and I apply remaining 50,000 through a fresh payment
Is my approach correct, or am i missing something?
Thanks
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Thank you very much for your reply Victoria :)
Yes, your approach sounds right. The only other option I can think of is to not book an invoice for the first step, but to simply enter a payment to the supplier and leave it unapplied. That will result in a -$50,000 payable sitting in the vendor's account until you book the invoice for the goods. At that time you can enter another $50,000 payment to them and apply the new payment and the old unapplied payment to the $100,000 invoice.
The benefit of this is that you do not have to enter the credit memo, the negative is that you have a negative payable amount, which many companies do not like.
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