how to record prepaid inventory?

Rochelle_9169986
Rochelle_9169986 Member Posts: 11 ✭
edited August 2019 in Reckon Accounts (Desktop)
We order product from our manufacturing plant in China. We pay the bill and then they are shipped.

Im wondering the best way to record in reckon (enterprise) 

At the moment, i pay the bill and record it, but this then checks in the items.

Then when the purchasing officer "item receives" they get entered into stock twice & shows we need to pay the invoice.

Comments

  • Rochelle_9169986
    Rochelle_9169986 Member Posts: 11 ✭
    edited September 2018
    Sorry I might not have explained that properly, we do pay the bill when issued (this happens before the products get here 4 weeks due to shipping time ) but then this means that it checks in the products even though it not here.

    Then the products get here, we do an item receipt, which in turn puts an amount due again from the items.

    We cant pay that bill as its already been 100% paid before the products got here
  • Kathy_8028595
    Kathy_8028595 Member Posts: 21 ✭
    edited November 2018
    Hi Rochelle,

    Not sure if this will work, but it helped me find a way around this: Found through Reckon Accounts Help: 

    To do this task

    2. Create another current asset account.
    Name the account "Prepaid inventory" or a similar name.
    3. Enter charges for the items by:
    Writing a cheque
    or
    Entering a credit card charge
    When Reckon Accounts indicates that you have an open purchase order for the supplier, do not select the purchase order.
    4. On the Expenses tab of the cheque or credit card charge, click the Account field. Choose the other
    current asset account that you created.
    5. Save the cheque or credit card transaction.

    To receive the items
    1. Find the cheque or credit card charge for the transaction.
    2. On the Expenses tab, select the line that contains your other current asset account.
    3. Go to the Edit menu and click Delete Line.
    4. Click the Items tab.
    5. Click Select PO.
    6. Click the purchase order that contains the items you paid for and then click OK.
    What happens?
    7. If necessary, record additional expenses (such as shipping) on a new credit card charge or cheque.  Don't add additional expenses to the existing credit card charge or cheque.
    8. Save the transaction.

    Regards,
    Kathy


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