Option 1: Voucher (or Check) Plus Debit Memo

  • First, create a voucher for the prepayment. The vendor specified on the voucher should be whomever you are purchasing the item from. Code the voucher split to “prepaid inventory”. Then, pay the voucher per normal A/P Payment process, with a payment method of Credit Card or whatever payment method you are using for the prepayment (and there is also a “G/L account” field next to the Payment Method selection on the Payment screen, so you can select the credit card account, as opposed to Cash or your normal bank account). Note: alternatively, you could shortcut the Voucher step and simply go straight to creating a one-off A/P check and coding it to debit prepaid inventory and credit your credit card account; however, Cetec ERP does not record the checks in history like it does with a voucher, thus vouchering is always best practice.

  • Then, create a Debit Memo

    • Navigate to ACCOUNTING » A/P » Debit Memos. Click Create Debit Memo, fill in the vendor name, then click the Create button.
    • Select the Prepaid/Deposit account in the Debit Memo header to credit the account.
    • If accounting receives an invoice from the vendor, either before or after the product is received, they may not know that purchasing prepaid with a credit card and may voucher that invoice. If so, having this debit memo sitting on the vendor account makes it available to offset against that voucher at the time of payment.
    • Note that issuing a debit memo to a vendor account normally debits accounts payable and credits whichever account you indicate, whether it be a prepaid account or an inventory or expense account. If you create the debit memo and you do NOT voucher the vendor invoice, then that debit memo will remain on the vendor account and they will still have to cancel the debit memo manually.

Option 2: Voucher (or Check) Plus Additional Voucher

  • Like option #1 above, create a voucher for the prepayment. The vendor specified on the voucher should be whomever you are purchasing the item from. Code the voucher split to “prepaid inventory”. Then, pay the voucher per normal A/P Payment process, with a payment method of Credit Card or whatever payment method you are using for the prepayment (and there is also a “G/L account” field next to the Payment Method selection on the Payment screen, so you can select the credit card account, as opposed to Cash or your normal bank account). Note: alternatively, you could shortcut the Voucher step and simply go straight to creating a one-off A/P check and coding it to debit prepaid inventory and credit your credit card account; however, Cetec ERP does not record the checks in history like it does with a voucher, thus vouchering is always best practice.

  • Then, when the inventory comes in, you can create another voucher, this time with two lines/splits. The first line split is for the full amount of the inventory, and the second line split is a negative amount for the prepayment coded to prepaid inventory to reverse the amount from the account. The voucher will reflect the balance due or nothing if prepayment was 100% due.

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