Prepayments/GIT - Goods in Transit

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
0
Comments
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
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.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)
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Shaz you left out the most important bit. You need to put the supplier name in the customer name field on the cheque.
@Zappy yeah - Luckily the system will prompt for it anyway 😊
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)
* Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services Ballajura, WA
0422 886 003
[email protected]
https://accounted4.com.au
(NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)