When a sum of money is prepaid to a vendor for unspecified product, the credit balance is established using the Quick Check function.
- At G/L / Quick Check, select the correct vendor and mark the Use Prepay checkbox. This debits the Accounts Payable general ledger account and enters this amount in the vendor's Prepay balance.
- Later, as Purchase Invoices are entered against this prepaid amount, mark the P column by selecting the box on each prepaid line to indicate Prepay is being used.
- Upon saving the Purchase Invoice, the vendor's Prepay balance is affected. No unpaid bill is created for the items marked as prepaid.
