In most cases, a payment transaction is the information that Accounts Payable needs to print one check for a vendor and update the vendor account with the check information.
However, the A/P Payment Entry screen lets you enter four types of transactions:
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Payment. Records a check, cash, or other type of payment of outstanding transactions. You can print the check from the A/P Payment Entry screen or enter the number of a previously written check.
The program displays the vendor's outstanding transactions (invoices, debit notes, and interest charges), and you select the transactions you want to partially or fully pay.
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Prepayment. Records a check or other type of payment to prepay an invoice. You can print the check from the A/P Payment Entry screen or enter the number of a previously written check.
Prepayments pay for a purchase before you have been invoiced for it. When you receive the invoice, you enter it using the A/P Invoice Entry screen, and post it. The prepayment will then be applied against the invoice.
- Apply Document. Lets you apply a posted prepayment or credit note to an invoice, debit note, or interest charge.
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Miscellaneous Payment. Lets you enter an invoice at the same time as you enter the payment for an Accounts Payable vendors or for a one-time vendor for which you have not set up a vendor record.
You enter the details of the purchase in the detail entry table in the same way as you enter an invoice. The distributions debit the general ledger accounts you specify and credit the bank account.
Tip: If you have a large number of one-time vendors, you should add a "miscellaneous vendor" record, so you can process payments using the A/P Create Payment Batch screen and keep statistical data for this class of vendor. Make sure that you select the option Generate Separate Payments For Each Invoice for the miscellaneous vendor (on the Processing tab of the A/P Vendors screen).
If you are entering a payment for a one-time vendor, for whom you do not create a vendor record, Accounts Payable does not create an invoice when you post the payment.