Purchase - Deposit Money into Supplier Company

aripauaripau Member Posts: 4

Hello,

I need some help here. My problems are how do we put in wave for a topup transaction?
For example:
1. ABC company (my company) transfer $100 to XYZ company (supplier) for topup. Later when we order items, they just deduct our money that are deposit to them because they don't proceed who are $0 in account or insufficient balance.

Hope anyone can advise me. Thank you.

Comments

  • thomssithomssi Member Posts: 27

    Go to transactions and enter an expense (yeah, I know it isn't an expense yet....). It will show as withdrawal, i.e. credit some cash/payment account. You can debit the other side to anything, put it against prepayments (add an account if you need to - call it topup or something).

    When you buy something and use up your balance go and edit it, maybe split the transaction and you can also allocate against a bill at that point if you have one or just against relevant expense line if you don't.

    Do NOT enter it as a journal transaction instead of expense as you then can't allocate against bill if you need to (raised question myself about that elsewhere).

    edited August 15, 2018
  • AlexiaAlexia Administrator Posts: 3,314 admin

    Thanks for jumping on this one, @thomssi.

    The "Add income" and "Add expense" buttons on top of the screen not being exactly accurate, I can explain! They're both meant as short-hand (respectively adds money to your payment account and takes it away) to make it easy for users with little to no accounting knowledge to get started.

    To have something actually show up as an expense in your reports, it needs to be assigned to an expense category. In this case, your prepayment account would be an asset account (you still own that value, after all). You can make that account into a payments account ("Bank & Cash") and just use it that to pay off expenses for that vendor in the future.

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