Screenshot showing application of prepayment to the invoice and reducing the balance to zero.
Hi Richard1052,
Keeping it simple and reflecting on what’s actually happened is the key to record all of this. Since you paid the pro-forma invoice upfront, create a Spend Money transaction. Allocate the full amount to a "Prepayments/Deposits to Suppliers" account. This will track the payment you made before receiving goods. Once the supplier sends the proper invoice for the partial order, enter it as a Purchases Bill. Match this bill to the prepayment you recorded earlier this links the payment to the actual invoice. For the broken items that resulted in a credit adjustment note, create a Supplier Credit Note in MYOB. Use this to adjust the original bill or negotiate its application to future invoices, depending on the agreement you’ve got with the supplier. After all that, make sure you’re tracking the leftover prepayment balance this represents what the supplier still owes you. Depending on your arrangement, you’re either waiting for the rest of the order or a refund if no further goods are coming.
You can check this help article for supplier prepayments for more info. It’s all about recording the transaction flows just like they happened!
Regards,
Shella
Hi Shella,
Thanks for the reply.
I allocated the pre-payment as a "Deposit to Suppliers" account and entered the invoice for the goods received like any other purchases. But this is where I get stuck.
What do you mean by "Match this bill to the prepayment"?
I tried to "Record supplier payment" but there is no option to choose "Deposit to Suppliers". Should it not appear there as an option?
Regards,
Richard
Hi Richard1052,
Here’s a good tip: try to record your transactions as close as possible to how they actually happened. So, if they’ve sent you an invoice for the full price and you’ve already paid it, just pop that into your software as an invoice for the full amount and match it with the payment.
Now, since they’ve sent you another invoice for only the items they delivered, you can record that the same way as well. If the second invoice is meant to replace the first one, you can just create a negative invoice for the same amount as the first invoice to cancel it out. You can read through this link if you need help with recording the negative invoice.
Regards,
Genreve
Hi Genreve_S & Shella_A
This is how I tackled the problem.
I think this make sense.
