Vendor Prepayments
wavasaurus
Member Posts: 4
I think I almost have things working, i have a vendor that i've made a pre-payment to, now I want to use that. I created an asset account under vendor prepayments. put in the amount of the prepayment. I created a bill for an amount for that vendor (less than the prepayment). Then I went to pay the bill on the bills page, the pop up comes up, i select the prepayment account but then it asks for payment method. Bank Payment, check, cash, cc card, paypal, other. What should I select here. No money is actually being sent as it should just be deducted from the pre-payment to the vendor. Not sure what to do here.
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Hi, @wavasaurus.
The payment method you choose for a given bill is just for your own records. It'll appear next to that payment when you click on "View/Edit bill" on the Bills page and nowhere else. It acts very similarly to how payment methods are logged for invoice payments.
In your case, you can put in whichever method you used to pay that vendor credit originally, or simply use "Other". As long as you've chosen your prepayment account as the "Payment Account" a few fields higher, the amount will be deducted from where it's supposed to.
Gotcha, thanks Alexia
No problem at all!