Processing Prepayments on a Purchase Order in Sage 100

With its highly effective and automated payment module, Sage 100 has played a vital tool for all businesses, large and small. However, a section of Sage 50 users has informed that there are some accounts-related features they are not quite familiar with. Some of them have informed me that they are finding it difficult to process prepayments on a purchase order in Sage 100. In this blog, we will look at this useful feature in Sage 100. We will also discuss other important matters related to prepayments.

Let’s start with the basics then.

What are Prepayments?

A prepayment is used to adjust accounts for payments made before receiving the benefit. Examples of prepayments include:

• Rent paid in advance
• Insurance premiums
• Legal retainer fees.

Read More-: How to Apply AR Prepayment to an Invoice in Sage 100 ERP

What is the Procedure to Record a Prepayment in Sage 100?

Please perform the steps below-

• Open Sage 100
• Click on the Accounts Payable Main menu 
• Now go to the Manual Check and Payment Entry section
• Type in the bank code
• Provide the check number. 
• Click on the Check Date and Check Amount fields
• Provide the amount and date of the prepayment.
• Click on the Vendor No. field
• Specify the vendor that is receiving the prepayment.
• Click on the Lines tab. 
• Click on the Invoice No. field
• Enter an invoice number that identifies the prepayment. For example, you may write PP followed by the payment date, such as PP120731( date in YYMMDD format).
• Click on the Invoice Amount field and type in the prepayment amount.
• Navigate to the General Ledger Distribution window
• Specify the G/L Account and Amount to distribute the prepayment amount. 
• In case the prepayment is a deposit related to an asset purchase, type in the deposit account into the G/L Account field. Make sure not to apply prepayment amounts related to assets to the asset account till the invoice is received.
• Now, click on the Accept tab
• Click on Manual Check and Payment Entry
• Click on Accept.
• The prepayment is recorded. Now, you will need to update the Manual Check and Payment Register

What is the Procedure to Record a Prepayment in Sage 100 using the Expense Distribution Table?

Please perform the steps below-

• Open Sage 100
• Click on the Accounts Payable Main menu 
• Now go to the Manual Check and Payment Entry section
• Type in the bank code
• Provide the check number. 
• Click on the Check Date and Check Amount fields
• Provide the amount and date of the prepayment.
• Click on the Vendor No. field
• Specify the vendor that is receiving the prepayment.
• Click on the Lines tab. 
• Click on the Invoice No. field
• Enter an invoice number that identifies the prepayment. For example, you may write PP followed by the payment date, such as PP210831 ( date in YYMMDD format)
• Click on the Invoice Amount field and type in the prepayment amount.
• Navigate to the Exp Dost Table field
• Enter a table code
• After you have finished entering the details for a line, proceed to the next line
• Navigate to the General Ledger Distribution Window. 
• Check if all the information entered is correct and make necessary changes, if required
• Click on Manual Check and Payment Entry
• Click on Accept.
• The prepayment is recorded. Now, you will need to update the Manual Check and Payment Register

In the sections above, we have discussed a step-by-step procedure to process prepayments on a purchase order in Sage 100. If you are still having problems implementing the steps outlined above, or if you have any further questions, you may contact some authorized Sage professionals 1800 964 3096.

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