Sage 100

Is there a way to create a prepaid expense that appears as a negative invoice on the AP aging at the same time the manual check is quick-printed or a wire transfer is entered?

I believe you would have to do it as a 2 step process as the check you cut would pay any invoice you are trying to create.

But if you create a 0 invoice and then apply the payment to it (to leave it as a negative balance), the GL Posting is to AP/Cash. Nothing will hit the prepayment account.

How to enter prepayments in Accounts Payable Resolution Click Accounts Payable, Main, Manual Check and Payment Entry. Enter or select Bank Code and Check No. Enter Date and Check Amount Enter Vendor No. Click Lines tab (enter Invoice No. or Create G/L Distribution. Click Create G/L Distribution Icon (#) Enter G/L Account and Amount. The system will create Invoice starting with CK, followed by 6-digit Check No. and Entry No. \ Enter Invoice No. or if unknown use number to identify prepayment invoice. (i.e. PPYYMMDD) Click General Ledger Distribution Enter G/L Account and Amount. The G/L Account entered in the G/L Distribution will be Debited and Cash Credited. When applying this prepayment to the invoice, use the PPYYMMDD in Accounts Payable, Main, Invoice Data Entry, Prepaid Invoice field to eliminate double posting to expense account. There is no Daily Transaction Register when referencing the Prepaid Invoice No. If the expense G/L account was not referenced on the manual check, do not reference the Prepaid Invoice when applying the prepayment. Enter the expense on the invoice received after the prepayment. Click Accept. Note: If the prepayment is a deposit for an asset purchase, enter the deposit account in the G/L Account field. Do not apply prepayment amounts for assets to the asset account until the invoice is received.

@MaryJoKrueger I am familiar with the approach you listed. That method doesn't record a negative AP invoice.

@BethBowers Yes. The debit will be to AP instead of to prepaid. That's what the client is asking for. They want to be able to voucher all checks. Apparently they have been sending wire transfers then recording them as debits to a prepaid and a credit to cash in manual check entry. There are hundreds of prepaids every month they need to be reconciled and it has become a mess.

Well, @DougHiggs - then I guess my approach would work. You need to enter the 0 invoice first (you will have to select a GL Account, but 0 dollars, so doesn't matter) and update it, then you can ""pay"".

@BethBowers Your approach works great. Thank you! I just reviewed it with the CFO and he likes it too.

@BethBowers , is your approach still a 2 step process or can you do it all in 1 at time of check payment?

A one step process would be preferred. Unfortunately it doesn't look like one step is possible off-the-shelf. Nancy, yours and Beth's approach is a great alternative, and the customer is happy.