To pay someone by cheque then apply it to an invoice received much later?

Hi,

I have to pay a company before they will issue an invoice. Can I record the cheque payment in the bank and then tie it up with the invoice when received?

Posted by Kirstie Wilson on Aug 26, 2009 3:29 PM BST

Hi Kirstie,

A simple way to handle this is to create a new asset account called 'Prepayments'. When you send the cheque record a General Transaction from the Cheque Account to the Prepayments account. When you receive an invoice from your supplier record a Money Paid Out transaction as normal, except pay from the Prepayments account instead of the Cheque Account.

Cheers,

Posted by Mark McLaren (Solar Accounts) on Aug 26, 2009 5:36 PM BST