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

Sage 100 Tips and Tricks

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

Step 1: Record the Payment in Sage 100

A/P Module

  • Manual check entry
  • Enter the check #, check amount and vendor
  • 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

Purchase Order Entry

  • Totals Tab
  • Enter Prepaid Amount and Prepaid check #Sage 100 PO PrepaymentStep 3: Process the Receipt & Invoice against the POWhen the Invoice is posted, the Prepaid amount will be applied to the invoice and the balance will post to Accounts Payable.Example:  PO to purchase $450 worth of inventory, prepayment of $50Sage 100 PO Prepayments ExamplePlease 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.


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