RIMAS for DOS Software

To: All Users of (Advanced) RIMAS for DOS

From: The SHARED LOGIC Group, Inc.

Re: Vendor Advances A/P

Date: March 8, 2000

1. You need a G/L account for Advances. (This is technically an asset account, because you are in effect buying something in advance, just like pre-paying rent). Set the account up in the current asset range, the account will be of type "B", with a Normal Debit/Credit balance of debit(D).

2. In A/P invoice entry, you will need to:

Create a regular invoice (of type "C")

Credit Accounts Payable for the positive dollar amount of the advance.

Debit the Advances account set up above for the same positive amount

3. Pay the invoice by generating the advance check for the vendor.

4. Return to A/P invoice entry.  Create a second 'Regular Invoice', (of type "C").  Credit the A/P account with the negative amount of the advance, and debit the Advance account the negative amount.

This creates a negative invoice for the vendor, and you are then free to select the invoice (or partial amounts of it) to offset 'normal' invoices to be paid.