3 Easy Steps for Recording a Prepayment Against a Purchase Order: Sage 100 Tips

Do you Need to Pay a Vendor in Advance Before Product can be Shipped in Sage 100?

While this may seem like an intimidating task, using these 3 easy steps will make recording a prepayment against a Purchase Order in Sage 100 simple.

Step 1: Record the Payment in Sage 100

In the A/P Module

• Navigate to Manual check entry
• Enter the check #, check amount and vendor number,
• Check the box for GL distribution only
• On the lines tab, enter the prepaid expense/deposit account to post the payment.

Step 2: Indicate on the PO that a prepayment has been made.

In the Purchase Order Entry

• Select the Totals Tab
• Enter the Less Prepaid Amount box and Prepaid Check Number box
• System will display new order total in the Order Balance box

Step 3: Process the Receipt and Invoice against the PO

When the Invoice is posted, the Prepaid amount will be applied to the invoice and the balance will post to Accounts Payable. See example below:

Example:  PO to purchase $450 worth of inventory, prepayment of $50

**Please Note: The prepayment does not show as a negative balance on the vendors account, but when the invoice is posted the prepayment will be deducted from the amount owed.

Using these 3 easy steps will help you to record a prepayment against a Purchase Order

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