Vendor Prepayments and Vendor Credits

MrGoodBytes

Hello,

Can someone please tell me how I can record the cost of a product sold against an Asset account (Vendor Prepayments and Vendor Credits).

One of our vendors has a credit system which we pay real dollars in exchange for credits. We buy products with those credits and our customers pay us real dollars for the products.

Trouble is when we invoice our customers we have to list an Expense Category, but no accounts under the Assets - Vendor Prepayments and Vendor Credits heading are selectable in the drop-down list.

MrGoodBytes

Fiddling around with this further I've found I can create a bill to myself and record a payment against the asset account.

I can also create a bill from the vendor for the pre-payment and record our payment against the appropriate bank account.

So the remaining question is how do I top-up the asset account with the same amount from the vendor bill in our expense account?

ConnorM

Hey @MrGoodBytes! Glad you could find out the answers to a couple of your questions after some workshopping on your own - that's always a welcome update! As far as topping up that asset account with the same amount from the vendor bill in your expense account goes, you would need to do a bit of manoeuvring to make that happen. I'd say you might want to check into this older community post, it's a little bit of a different workflow, but I think it should still work.