A/P EFT payments

SUGGESTED

We purchase merchandise from OVER-SEAS which requires deposit on PO order through EFT, what is the best accounting method to post this payment?

I have been entering the payment through A/P payments as OPEN CREDIT, when invoice is received through purchasing they have to first receive in parts, enter invoice and then go back & apply OPEN CREDIT. is this the best method?

thank you,

char

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    SUGGESTED
    Char- You are correct. That would be the properly method to create and post a prepayment or deposit to a vendor. That follows the steps in our Knowledge Base article #37255 "How to post a prepayment or a deposit to a vendor"
    Resolution

    To prepay vendor do the following:

    Select AP , Checks, Enter Payments
    Select the Vendor
    Enter Check #, EFT# or Credit Card
    Enter the Amount and Date
    Enter the amount to pay in the Open credits field in the 'Distribution' section
    Post Only. (Select Post and Print if a check is being sent to the vendor as prepayment)
    Note: Once an invoice is posted for the Vendor, go to AP, Invoices, Apply Open Credits and apply the open credit to the invoice. See 'How to manually apply open credits to Accounts Payable invoices' in the Related Resources section below.


    Thank you,
    Coleen