Prepayments to Creditors

LyndaSurg

We make payments on purchase orders when we order stock, quite often from overseas. I need to be able to have it so a creditor shows a credit balance from a payment made which will then offset with the invoice when the goods are received.

I use bank data so need to be able to process it through there.

Thank you

Acctd4

Not sure about bank data as I don't use that but I would use a "Write Cheque" & post to your Accounts Payable account (no tax code - GST is only applicable upon receipt of the Bill/goods, not on pre-payments) 

This will create a credit in the A/P for this supplier which can be allocated to the Bill when you receive it.