Prepayments/GIT - Goods in Transit

David Castro

Hi Everyone,

i have a question on Prepayment/GIT(Goods in transit) , do i create a bank account name: Prepayment/GIT,

when I a do a prepayment (partial or fully prepaid).

Do I enter a Transfer from my cheque-bank account to Prepayment/GIT bank account. To show money leaving cheque-bank account.

Once I receive the actual invoice with the stock, i will write a cheque from the Prepayment/GIT bank account?

is this the right way to go about this?

Thanks DC

Zappy

Well I wouldn't. I'd make it a credit on the supplier account. I think youre making it more complicated than it really is. And thank you for your question

Acctd4

If you’ve not received the Bill yet, I would just create a Write Chq to the Supplier, posting to Accounts Payable. This will then sit as a credit which you can apply when you enter the Bill.

Zappy

Shaz you left out the most important bit. You need to put the supplier name in the customer name field on the cheque.

Acctd4

@Zappy yeah - Luckily the system will prompt for it anyway 😊