Vendor Prepayment / Paying Up Front / Paying a Deposit - before receiving Parts

This article will just explain how / where you need to account for Vendor Prepayment / Deposit or paying the Vendor Upfront prior to receiving the parts into stock (VR) in Blackpurl 

Scenario:

The Dealership wants to order parts from Vendor: Smith & Co but the Dealership does not have an account with them so Smith & Co are requiring the Dealership to pay up front.

How to: 

Remembering that Blackpurl does not deal with the $$ side of your business - the processing of the Vendor Prepayment / Payment up front etc is done in your Accounting Package 

In Blackpurl

• Dealership would process the VO as normal and once the Vendor Invoice comes in from the Vendor asking for payment

In your Accounting Package

• the user would then go into your Accounting Package and make the payment to the Vendor 

• to process the Prepayment in your Accounting Package, you will need to basically process a credit on the Vendors record 

• this is a link to the Xero Support on how to record a Prepayment - Record a Prepayment (Xero)

• this is a link to the QuickBooks Support on how to record a Prepayment - Record a Repayment (QuickBooks Online)

In Blackpurl 

• When the goods are received by the Dealership, the user would finish the VO / VR / VI process and the Vendor Invoice will integrate over to your Accounting Package as unpaid

In your Accounting Package 

• Once you see the relevant Vendor Invoice in your Accounting Package, you would then pay (or allocate) the Vendor Invoice with the Prepayment already sitting on the relevant Vendor Record