Forum Discussion

leihu's avatar
leihu
Experienced User
4 years ago
Solved

Payment date is earlier than bill date

Dear Experts,   I received a bill from a supplier, but the date on the bill is later than the date I paid.   I initially just used pay bill to pay the bill as normal regardless of the early payme...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi leihu 

     

    Thanks for your post. Your friends suggestion uses a clearing account (the prepayment account) which is one way to handle prepayments. We recommend using the method in that help article as it links the prepayment to the supplier so there is payment history. 

     

    The dates in the screenshots of the help article are just because the examples were recorded on the same day. When recording the bill and payment in step 1 you would enter the date as the date you made the prepayment. Then enter the actual bill with the invoice date and apply the debit note.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff

Hi leihu 

 

Thanks for your post. Your friends suggestion uses a clearing account (the prepayment account) which is one way to handle prepayments. We recommend using the method in that help article as it links the prepayment to the supplier so there is payment history. 

 

The dates in the screenshots of the help article are just because the examples were recorded on the same day. When recording the bill and payment in step 1 you would enter the date as the date you made the prepayment. Then enter the actual bill with the invoice date and apply the debit note.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

leihu's avatar
leihu
Experienced User
4 years ago

Hi Tracey,

 

You've just solved one question for me only a few days ago, and you solve another one again. You not only tell how to do things, but also why. I really appreciate your expertise and time. Thank you very much indeed.

 

Just last night, I found another solution (not sure it's a solution or not). That is,

(1) create a purchase order

(2) pay the order on the date when the transaction happens on bank statement (earlier than bill)

(3) finally when I receive the bill from supplier, change to order to bill.

 

I found the method is quite similar to the one from my friend, because when I pay the order, MYOB transfer the amount from the bank account to another account named "Deposits to Suppliers" (equivant to the prepayment account she let me create). And when I change to bill, MYOB pay the bill from the deposits account. The only difference is that with my friend's method I need to transfer the money manually, but with the purchase order methods, MYOB does that for me.

 

Also, compared to the $0 sales methods, I like this method. Because with $0 sales I need to create an extra purchase each time this situation happens (and that payment is earlier than bill is quite often), but with purchase order no extra purchase is needed.

 

As always, I want a suggestion from experts like you. Thanks again!!

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    4 years ago

    Hi leihu 

     

    Thank you for those very nice words, I'm really glad that I've been able to help you.

     

    Purchase orders is another way to handle this. The only thing with using this method is that it is more complicated if you need to delete a payment or order. This help article, Supplier Deposits, has detailed information that you may find useful.

     

    There might also be accounting implications as it's a prepayment not a deposit so you might want to check that with your accountant.

     

    Please don't hesitate to post again if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • leihu's avatar
      leihu
      Experienced User
      4 years ago

      Tracey_H Thanks a million, you’re amazing!

Related content