Creating a Vendor Prepayment

Creating a vendor prepayment involves entering the vendor and payment details. When creating a vendor prepayment, you will begin by entering the essential information, such as the payment date, vendor name, address, payment amount, etc. You can also link a purchase order to the vendor prepayment when creating it.

To create a vendor prepayment, go to Menu > Purchase > Prepayment > Vendor Prepayment

Vendor Prepayment Fields

Field	Description
Payment Date	This field allows you to enter the date when the payment was recorded.
Store	This field allows you to select the store associated with the transaction where goods or services will be delivered or rendered.
Vendor	This field allows you to search and select the vendor associated with the prepayment.
Payment Amount	This field allows you to enter the total amount of funds being paid in advance to the vendor.
Payment Method	Enter the method used to execute the payment, such as cash, check, wire transfer, or electronic payment.
Payment Account	Enter the checking/bank (asset) account from which the prepayment is made.
Asset Account	Enter the prepaid expenses (Asset) account in which the prepayment is recorded as an asset until the goods or services are received.
Address	This field displays the address of the vendor. Once the vendor is selected, this field will be auto-populated.
Exchange Rate	If the vendor is foreign, you can edit the exchange rate here.
Cheque Number	This field applies if the payment method is a cheque. Enter a number, or check the “Print Later?” option to print the cheque number later from the queue. The system will automatically generate the next cheque number from the system – it is incremented from the previous number.
Reference Number	Enter a reference number, if required, for tracking and referencing the prepayment transaction.
Memo	This field allows you to add any additional notes or information related to the prepayment.
Purchase Order Ref#	This field allows you to link the purchase order with the vendor prepayment directly from the payment module. Search and select the purchase order for which you want to record the prepayment.
Link PO Amount	Enter the amount corresponding to the purchase order that you want to want to link with the prepayment.
Link	Click on this button to link the purchase order and the corresponding amount. You can link multiple POs with a prepayment. All the linked PO(s) will be listed in the section below.
Purchase Order#	This field reflects the purchase order number to which the prepayment applies.
Amount	This field displays the purchase order amount that is linked with the prepayment.
Amount Applied	This field displays the portion of the prepayment amount applied to the purchase order(s).
Amount Refunded	This field displays the portion of the prepayment amount refunded, if applicable.
Amount Remaining	This field shows the balance of the prepayment still available to be applied to future purchases.

After completing all the details, click on "Save" to create a vendor prepayment. The system will automatically assign a unique number to the sales order in the format of VE-VP000001, where "VE" denotes the store code and 1 denotes a sequential series. This number will be displayed on the top left corner of the page. Once this number is generated, it becomes a permanent identifier and cannot be altered.

Please note that when a Vendor Prepayment is made, a payment receipt email notification is automatically sent to the vendor's Billing Email Address. If the Billing Email is empty or unavailable, the email is sent to the vendor's Main Email Address instead.