Hi,
please tell me how to record advance payments given to customer or taken from vendor.
Thank u
Hi,
Advance Payments will never be given to Customers as you mentioned above, rather received from Customers and Advance Payments will be made to Vendors.
It’s quite Important to understand how the advance payments in Accounting work, if you can understand this in Accounting then the Flow in Navision is quite simple. Else, you will end up in making mistakes.
Anyway, in short. Link the Purchase Prepayment Account & Sales Prepayment Account to G/L Codes in G/L Setup-Posting Groups-General-Posting Setup.
Take an example, lets make a PO to a Vendor of $ 1,000. key in the Prepayment percantage in the field “Prepayment %” available on Lines and header as well. Now, the Prepayment amount will calculate on the total Value of the PO against the Percentage given, VAT/GST is subjective to each Vendor whether if it;s exempted or NO GST or GST Applicable.
Now, you may check this on F9 Statistics window in the Tab-Prepayment. Click, Posting-Prepayment-PostPrepayment Invoice.
Once posted, Navision will create the related G/L , Vendor & VAT Entries. Same rule will apply for Sales Prepayment as well.
Please test it in Quality System prior to doing in Live Navision. Some user had posted that there were some problems with VAT Prepayments. So, pls check this on Indian Localization.
Regards,
Reddy.
thank u blue sky it is so clear to me thank u very much
My Pleasure…
Regards,
Reddy.