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