Prepayments for Purchase Orders: Generated Transactions
To process a prepayment for a purchase order, you create a prepayment request and pay it with a payment. Then you apply a prepayment document to an AP bill. During these processes, the system generates GL transactions described in the following sections.
Transaction Generated on Applying AP Payment to Prepayment Request
When the payment that has been applied to a prepayment request is released, the system generates a batch of the following transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Cash account | Vendor | 0.00 | Prepayment Amount |
| Prepayment account, if specified, or Accounts Payable account otherwise | Vendor | Prepayment Amount | 0.00 |
You can view the reference number of the GL batch generated for a particular AP payment application on the Financial tab of the Checks and Payments (AP302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.
Transaction Generated on Applying Prepayment to AP Bill
When a prepayment application to the accounts payable bill is released, the system creates a batch of the following transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Prepayment account, if specified, or Accounts Payable account otherwise | Vendor | 0.00 | Prepayment Amount |
| Accounts Payable account | Vendor | Prepayment Amount | 0.00 |
You can view the reference number of the GL batch generated for application of prepayment to particular bill in the Batch Number box on the Application History tab of the Checks and Payments (AP302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.
For the list of transactions that are generated during the processing of a purchase, see Purchases of Stock Items: Generated Transactions.