Recording prepayments (retainers) for vendor services
KB Article #:
81761
Summary:
Recording prepayments (retainers) for vendor services
Description:

Need to properly record prepayments (retainers) for vendor services.

Resolution:
When a user prepays a vendor for services, that prepayment is often called a retainer. In Ajera, the user will pay the vendor the prepayment (retainer) and then track the prepaid services that a vendor performs as follows:
Pay the vendor. To issue a prepayment, the user will create an invoice with only one distribution:
  1. Go to Manage > Vendor Invoices > New tab
  2. Enter the invoice.
  3. Enter only one distribution, and
  4. Make sure to select a Vendor Advance GL account in the Account field.
  5. Pay the invoice, making the check payable to the vendor.
When vendor performs the service or part of the service and issues an invoice, create an in/out $0 vendor invoice
  1. Go to Manage > Vendor Invoices > New tab
  2. Enter a row with a positive cost amount to the project (if the services are associated project) or an expense GL account
  3. Enter a row with a negative cost amount to the Vendor Advance GL account selected on the original vendor invoice
  4. Save the net $0 invoice. It will automatically be marked as paid.
Note: In/out vendor invoices cannot be edited or voided. If an adjustment needs to be made, the user will need to adjust using an additional in/out vendor invoice
 
Details  
 
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