Prepayments on supplier account

Is there a way to allocate a prepayment to a specific invoice? I have a supplier that we pay on proforma and we do not get the invoices until at least 8 weeks later, maybe longer if delivery is delayed. This means that I have numerous prepayments on their account. At the moment I delete the payment and then re allocate it to the invoice. Can this not be done from the supplier account?

Any help would be appreciated.


Hi @Crystalcat1

You can pay the invoice from the balance held on the supplier account but this just reduces the balance it doesn’t tag the specific payment to the invoice.

The way you are doing it would be the only way to do it unless rather than holding it on the supplier account you created a holding bank account - so you would tag the payments into the holding account and then tag them to the invoice from there?

Hi Beth,

Thanks for your help, a holding bank account sounds like the way forward for me.


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If you do this make sure that when you do ultimately tag payment to the invoice you set the date of payment to be the same as the date the true payment arrived in the holding account, so everything ends up on the right dates on your VAT return (assuming you’re VAT registered, but it’s good practice to do this anyway).

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