Prepaid Vendor Invoice

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Ha Lam

• June 19, 2023 13:50

Is there a way for us to apply a CD before the payable accounting period. For example, our rent invoice is due 7/1/2023, we would like to issue a check on 6/23/2023, but the system won't let us since the disbursement date is before accounting period 2023-07. 

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  Bao Do

  • June 23, 2023 01:11

  There are 2 ways of creating an AP and applying to the CD.

  METHOD 1:
  Create the AP, then click the Pay or Pay Batch button to create the CD. This also applies the CD to the AP automatically. In the scenario you describe in your post, you are using this method but you're trying to create the CD in a date prior to the AP. This isnt allowed. Think about it logically...bc it also applies at the same time, it violates a simple truth. You can't apply a CD to an AP on that earlier date bc the AP won't exist until a layer date.

  METHOD 2
  Create the CD manually (not from the AP). That CD can be on the earlier date. Then create the AP on the later date. Then you can apply (called reverse-apply) the CD to the AP...the applied date can be the later of the 2 dates (the AP date in this case) or greater.

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  Ha Lam

  • July 12, 2023 15:38

  If I did the method 2, wont' the transaction will record in July instead of June even though the expense came out of our pocket in June?

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  Bao Do

  • July 14, 2023 02:56

  Not if you code the cash disbursement to expense in June. Model the accounting entries out and you'll figure it out

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