Vendor prepayment is a common practice in business transactions where a payment is made to a vendor before the receipt of goods or services. Properly managing vendor prepayments in accounting software helps ensure accurate financial records, better cash flow control, and compliance with accounting standards.

Create Vendor Prepayment #

1. Navigate to the Purchase Order for which the prepayment is being made.
2. Click Generate and select Prepayment.
3. Enter the Payment Method and Ref number, if applicable.
4. Enter the prepayment amount in the Unapplied field at the bottom.
5. Click Save to save a draft or Post and Close to finish.