You are not missing anything, the A/P advance billings does not work the way
most of us would like it to. However, it is on the list of changes for 5.0,
so hopefully it will work correctly then. We struggled with this and found
the following method to work best for us:
At pre-pay invoice(s):
1. Enter an invoice for the prepayment.
a) Go to AP > General Operations > Invoice Entry.
b) Add Invoice.
c) Add Advance Billing Line.
d) Select PO/Line.
e) Enter Amount.
f) Add 'Prepaid Expense' account in GL Distribution. For us, this account
is: 14403 WIP-Prepaids.
g) Post
NOTE: Advance Billings do not pull forward from the purchase order when the
receipt line is invoiced. A suggested method of tracking Advance Billing
Lines on purchase orders is through the Accessories/Export Utility or a
Report Builder Report using the APInvDtl table. The Advance Billing Line is
referenced in the LineType field.
2. Enter a check for invoice payment.
a) AP > General Operations > Check Entry.
b) Select Add Manual if you've previously issued a manual check OR Add if
you are creating a computer generated check.
c) Pay Invoice.
d) Select the invoice entered in step 1.
e) Print and Post
At material Receipt
3. Enter a packing slip.
a) Go to SR > General Operations > Receipt Entry.
b) Add a purchase order receipt.
4. Enter the invoice for the total dollar amount of the purchase order
receipt.
a) Go to AP > General Operations > Invoice Entry.
b) Add Receipt Billing Line.
c) Add Misc Charge to the Invoice Header.
d) Select Prepayment Charges. If a Prepayment Miscellaneous Charge has not
been set up, add this Miscellaneous Charge using the same 'Prepaid Expense'
GL number used in the GL Distribution field on the check entry in step 1..
e) Enter the amount of the prepayment as a negative (ex: -100.00) and click
Close. The GL Distribution box will reflect the same GL number used when
creating the prepayment check. Note: THE INVOICE WILL NOT POST IF THE
TOTAL AMOUNT OF THE INVOICE IS ZERO.
f) Post.
5. Process a check for the invoice.
a) Go to AP > General Operations > Check Entry.
b) Select Invoices.
c) Print and Post
The following transactions are created from the above steps.
1. Prepayment invoice DEBIT Prepaid Expense CREDIT
Payables Account
2. Invoice payment DEBIT Payables Account
CREDIT Cash Account
3. Receipt entry DEBIT Expense Account
CREDIT Clearing Account
4. Invoice entry-receipt DEBIT Clearing Account
CREDIT Payables Account
Invoice entry-misc chg DEBIT Payables Account CREDIT
Prepaid Expense
5. Invoice Paid DEBIT Payables Account
CREDIT Cash Account
most of us would like it to. However, it is on the list of changes for 5.0,
so hopefully it will work correctly then. We struggled with this and found
the following method to work best for us:
At pre-pay invoice(s):
1. Enter an invoice for the prepayment.
a) Go to AP > General Operations > Invoice Entry.
b) Add Invoice.
c) Add Advance Billing Line.
d) Select PO/Line.
e) Enter Amount.
f) Add 'Prepaid Expense' account in GL Distribution. For us, this account
is: 14403 WIP-Prepaids.
g) Post
NOTE: Advance Billings do not pull forward from the purchase order when the
receipt line is invoiced. A suggested method of tracking Advance Billing
Lines on purchase orders is through the Accessories/Export Utility or a
Report Builder Report using the APInvDtl table. The Advance Billing Line is
referenced in the LineType field.
2. Enter a check for invoice payment.
a) AP > General Operations > Check Entry.
b) Select Add Manual if you've previously issued a manual check OR Add if
you are creating a computer generated check.
c) Pay Invoice.
d) Select the invoice entered in step 1.
e) Print and Post
At material Receipt
3. Enter a packing slip.
a) Go to SR > General Operations > Receipt Entry.
b) Add a purchase order receipt.
4. Enter the invoice for the total dollar amount of the purchase order
receipt.
a) Go to AP > General Operations > Invoice Entry.
b) Add Receipt Billing Line.
c) Add Misc Charge to the Invoice Header.
d) Select Prepayment Charges. If a Prepayment Miscellaneous Charge has not
been set up, add this Miscellaneous Charge using the same 'Prepaid Expense'
GL number used in the GL Distribution field on the check entry in step 1..
e) Enter the amount of the prepayment as a negative (ex: -100.00) and click
Close. The GL Distribution box will reflect the same GL number used when
creating the prepayment check. Note: THE INVOICE WILL NOT POST IF THE
TOTAL AMOUNT OF THE INVOICE IS ZERO.
f) Post.
5. Process a check for the invoice.
a) Go to AP > General Operations > Check Entry.
b) Select Invoices.
c) Print and Post
The following transactions are created from the above steps.
1. Prepayment invoice DEBIT Prepaid Expense CREDIT
Payables Account
2. Invoice payment DEBIT Payables Account
CREDIT Cash Account
3. Receipt entry DEBIT Expense Account
CREDIT Clearing Account
4. Invoice entry-receipt DEBIT Clearing Account
CREDIT Payables Account
Invoice entry-misc chg DEBIT Payables Account CREDIT
Prepaid Expense
5. Invoice Paid DEBIT Payables Account
CREDIT Cash Account