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. Edit the prepayment amount in the Amount paid (if required) and select the VAT rate.
5. Click Save to save a draft or Post and Close to finish.
6. Generate the Tax invoice (if required).