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How are invoice prepayments (eg. 25% deposit with order) handled in GP?
Since the user is paying for something in advance of receiving the product or service, I think GP must keep track of prepayments in some special "credit" account. For example, if the order is cancelled before delivery, they should get that money back.
So how do we pass Prepayment invoices over to GP? Is the prepayment invoice just a standard invoice (perhaps with a special GL account or something) or is it handled differently than regular invoices in GP?
And when the final invoice is paid in the end (i.e. once order is fulfilled), do we have to send two transactions to undo/reverse the original Prepayment (i.e. credit the prepayment account and debit the expense account)?
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If you get an 'provisional invoice' from a supplier that wants a 25% deposit, then enter that invoice for the full amount and be sure to code it to prepaid ( right all you accountants ) then you can make a payment - regular cheque run - for the 25% against the invoice recorded in the Payables.
If the transaction does not go thru, then the Supplier will have to send you back your deposit and you will have to (1) void the payment and (2) void the invoice.
By voiding the cheque the monies will return to the bank - and you will wash that against the deposit from the Supplier as they return your money.
Voiding the invoice will remove the transaction from the OPEN file and then Supplier / Vendor record will show that this happened, but that all of it was voided.
As to the accounts, well that is where I leave it to the accountants in the group. I think that I have provided a starting answer to the problem - GP will handle this, you now have to work with your accountant and figure out where you want to hold the money in the mean time.
GOod luck.
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