I have some difficulty with handling Prepaid suppliers in Accounts Payable. I need your help.
Let’s take the example of Xerox Co.
1st Payment in Jan 2010 Advance Payment of 101,808.00 SAR to Xerox.
2st Payment in Feb 2010Advance Payment of 11,125.00 SAR to Assyst.
3rd Payment in May 2011Advance Payment of 22,067.00 SAR to Assyst.
In General Ledger
14008-00-0000-0000 Prepaid Supplier 101,808.00 Dr
14008-00-0000-0000 Prepaid Supplier 11,125.00 Dr
14008-00-0000-0000 Prepaid Supplier 22,067.00 Dr
11200-00-0000-0000 Bank 135,000.00 Cr
Later once we complete with Xerox.
16514-04-0000-0000 Software & Hardware 135,000.00 Dr
14008-00-0000-0000 Prepaid Supplier 135,000.00 Cr
This same transaction we want to enter in Accounts Payable module. By creating Xerox as Vendor. 21100-00-0000-0000 Xerox Account Payable
When I make Prepayment or Manual Payment Entry
21100-00-0000-0000 Xerox Account Payable 135,000.00 Dr
11200-00-0000-0000 Bank 135,000.00 Cr
Once I get the invoice
16514-04-0000-0000 Software & Hardware 135,000.00 Dr
21100-00-0000-0000 Assyst Account Payable 135,000.00 Cr
There is no effect on Prepaid Supplier Account. In GL its easy, but difficult in Payable module.
My solution:
Create a vendor called Xerox and define AP Account as 14008-00-0000-0000 Prepaid Supplier. But they ignore my solution.
Is there is any other way to handle this type of transaction in Payable Module.
Waiting for your prompt replay.
Regards,
Naseeruddin
