Process Prepaid Inventory

Before processing prepaid inventory within RFMS create a GL account called Prepaid Inventory. This should be a current asset account and is designed to be a holding account. Once done with the process of the inventory, it will have a credit and debit posting with a ZERO balance.

1. Create the AP invoice to pay for the inventory
2. Code the accounts payable to the Prepaid Inventory account
3. Print and distribute the check.

This completes the initial process setting up the purchase.

When the inventory is received:

1. Using the included invoice, from the inventory module, utilize Receive From Invoice Or Cost from Invoice (whichever is applicable). Using this process, the invoice will be automatically distributed (coded) to the Inventory account code. Do not click the OK or Save button.  Go to Step 2.
2. Change the AP total (both discountable and non-discountable) to zero (0.00) or the amount due. This will create an out-of-balance in the distribution.
3. Add a negative line in the distribution coded to Prepaid Inventory matching the inventory distribution line. This will make the invoice balance to zero.
4. Pay the invoice with a single check write, online payment or select this zero invoice for payment next time a check for this vendor is created.

NOTE: This posts to both Inventory and Prepaid Inventory and zeroes the Prepaid Inventory account