prepayment

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Trisha1981
Trisha1981 Registered Posts: 3
in Using Accounting Software
I have a problem with posting transaction.
On 1/3/18 I paid £300 in advance for some products what I received 15/3/18.
On that day (15/3/18) I received invoice for £1200 but already paid £300, so now I have to pay £900.

How to post this transaction in Sage 50
I made bank payment with prepayment n/c 1103 £300
Don’t know how to allocate invoice for supplier, £1200 if already paid £330.

Can anyone help please

Comments

  • fournaanjez
    fournaanjez Registered Posts: 32
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    I would say post the full invoice amount to the supplier account and then post a journal moving the £300 prepayment from prepayments to receivables, reducing it's value down to £900.

    Hope this helps.
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    Post the 1,200 invoice
    DR Expense 1,200
    CR Trade creditors 1,200

    And pay off the supplier
    DR Trade creditor 300
    CR Bank 300

    DR Trade creditor 900
    CR Bank 900

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