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Advanced Quickbooks question: Deposit required on inventory purchase...
Let's say a company is purchasing inventory (accrual based accounting). They are required to put forth a 50% deposit when they place the order.
How would you handle this? If they just create a bill for 100% of the order it is going to immediately show up in inventory, right? This company may not get the stuff for weeks and it would throw off their physical counts.
They've been using a system where they keep accounts called "prepaid ." They show zero amounts of the inventory item purchased and the correct amount to the prepaid (asset account). That sort of works, but it's a lot of work keeping up with this as it's a pretty good size company. Is there a better way?
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Lee
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