• From: Indonesia
  • Registered: 12/27/2011
  • Posts: 18

Topic: Down Payment allocate to supplier invoice receive

Hello,

When I make Down Payment to Supplier FA make a journal as follow:
   
     Debit     Down Payment to Supplier $XXXX
         Credit            Bank                            $XXXX
     ( To Record Down Payment to Supplier)

But when I allocated this down payment to supplier invoice receive FA not make a jornal.
any body help me to solve this bug.

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Down Payment allocate to supplier invoice receive

Allocations do not make any GL journals. Payments does. This is just as it should be. Ask an account for advise.

/Joe

  • From: Indonesia
  • Registered: 12/27/2011
  • Posts: 18

Re: Down Payment allocate to supplier invoice receive

Joe,

When I spend money for down payment to supplier I will record journal as follow:

Dr   Down Payment - Supplier (Current asset)
                  Cr     Bank / Cash
(To Record Down Payment to supplier)

And then when I receive Supplier Invoice I will record journal as follow:

Dr, Goods Receive Clearing Account
              Cr   Account Payable (supplier)
              Cr   Down Payment - Supplier
( To Record Invoice receive and allocate down payment)

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Down Payment allocate to supplier invoice receive

In FA it works al follows:
Register the Down Payment (this will also create a GL journal.
Register the Supplier Invoice. After that goto Allocate Supplier Payments or Credit Notes and pickup your Down Payment and allocate your supplier invoice and save it.
This will take care of everything.

/Joe

  • From: Indonesia
  • Registered: 12/27/2011
  • Posts: 18

Re: Down Payment allocate to supplier invoice receive

Joe,

When I allocate down payment to supplier invoice, In GL down payment -supplier account still show debit balance. actually, from accounting side practice when Down payment - supplier allocate to invoice it should be credited to reduce payable to supplier invoice.

Thanks

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Down Payment allocate to supplier invoice receive

You should set the AP account on the supplier to be the same as the account you book the debet value from the payment.
Using this approach as you do you should consult an accountant to do the right things.
We do not have the resources to help you with accountancy problems.

/Joe