Prepaying for Purchase Orders

Enhancement Voting Purchase Orders
1

Name of Feature/Request: Prepaying for Purchase Orders

What financial, time savings, or quality of life improvements will occur from this: Charlie works with international vendors who require a deposit/ pre-payment prior to the bill being created. Charlie would like a way to complete and record this payment in Striven | Frequency: 20% of their POs are affected by this pre-payment requirement | “We have some vendors that require a pre-payment for purchase orders. We do not have a bill and we haven’t received any goods, we just need to record the pre-payment.” A majority of their vendors overseas require prepayment so they need to apply a prepayment without using a Bill since the Bill is what brings the Inventory into the system.
“1. Create a payment from a PO without creating the bill. This payment would be linked to the PO, and would automatically be applied to the bill once it is created.
2. Create a bill without receiving inventory - this way we could partially pay the bill, and the receiving part of it could be done later on.”

Attempted Solutions So Far: Charlie could enter a journal entry for his pre-payment, but this isn’t able to be applied to a PO.

Digging deep - Any additional Why behind this request / How was this accomplished before Striven in what system or software: Previously accomplished: https://APP.Striven.com/t/prepayment-for-inventory/438

StrivenID: 3143640

2

I would be interested to know how others are accomplishing this process. We have vendors that require a deposit as well. Currently, we are entering a Bill Credit using a Prepaid Inventory Account for the Deposit amount and also creating a Check for the amount of the Deposit to the same Prepaid Inventory Account. When the Bill is received for the Item, the Bill is entered for the entire amount and the credit is applied to the Bill. Remainder is then paid normally.
Does anyone have an easier solution?

3

That’s exactly how we do it. The same as a customer prepayment, but for vendors.

Many ‘accounting’ systems that let you prepay without receiving goods (or customers prepaying for sold goods) still use rotten accounting and actually hit the COGS/Income accounts instead of using proper accounting SOP causing tax/income issues while only keeping inventory accurate.