How To: Create and Allocate Supplier Prepayments

Summary:

This guide outlines the steps to assign credit to a supplier for upfront costs by recording an Office Payment, processing disbursements, and applying the credit to future purchases. 

It ensures accurate supplier ledger entries and allows firms to efficiently manage anticipated disbursements.

Step 1: Record an Office Payment

To assign credit to the supplier (upfront cost), record an Office Payment:

Like any Office Payment, you will need to:

• Select the relevant Bank account
• Select the Supplier
• Select the Payment Method
• Enter the Payment Amount

If the Allocation Type does not default to Supplier Credit, remove the existing allocation row and add a new row allocated to the supplier.

This step creates a payment against your bank account (to pay the supplier) and records a credit against the supplier ledger.

Step 2: Process Disbursements on the Matter(s)

• The individual disbursements can now be processed on the matter(s) as regular anticipated disbursements.
• A Purchase can be recorded for these anticipated disbursements against the supplier.
• This step can be completed regularly (e.g., weekly, monthly) based on your firm’s workflow.

Once recorded, the purchase will appear in the supplier ledger.

Step 3: Apply the Credit to the Purchase

• When it's time to pay the purchase, use the Pay with Credit option.
• A window will open allowing you to assign the credit amount and payment date before saving.