IMHO the common solution for this kind of problems is to use a "internal transfers" account. (I'm not sure if I use the correct term. In Dutch we call this "kruisposten".) When paying in advance you book: checking account: Credit internal transfers: Debet If you connect the internal transfers account with AR_paid, AP_paid, you can "pay" the real invoice using the internal transfers account as a pseudo checking account. Marjan Waldorp, tux4u.nl Joseph wrote:
On 03/09/10 14:15, Chris Travers wrote:On Tue, Mar 9, 2010 at 11:32 AM, Joseph <..hidden..> wrote:How to handle correclty pre-paid inventory?Can you be more specific? What do you mean "pre-paid?" Best Wishes, Chris TraversWhat I mean is you pay for supplies/goods first before you receive them.Eg. Supplier sends me "proforma invoice" and I pay it but I don't receive the goods till maybe after two months; meantime I have to reconcile the bank statement.