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Invoices / Bills: Pro forma, advanced payment and products no longer available

Started by Christian Jakobsson -   in Accounting

Hi,

I am trying to figure out how to best book-keep the following:

We place an order pro forma with a supplier for say £1000.

We transfer £1000 to their account.

Supplier delivers some of the items but the total shipment is only worth £900, some products are no longer available. The rest of the balance is retained by the supplier and we can use this balance for our next order.

How do I go about to properly input these transactions? How do book-keep the remaining balance?

Many thanks
Christian
Heya Christian, you could use Prepayments to record the advance payment. Then when you receive the goods, you'd raise a Bill for for the supplier and allocate 900 to the Bill. This'll leave 100 remaining on the Prepayment, which you can allocate to a Bill that pops up in the future for the supplier. :)
 

Kavi S (Community Manager)