I think we would call that a clearing account.

Luke

On Wed, 10 Mar 2010, Iserv-appbox wrote:

> IMHO the common solution for this kind of problems is to use a "internal 
> transfers" account. (I'm not sure if I use the correct term. In Dutch we 
> call this "kruisposten".)
>
> When paying in advance you book:
>
>  checking account: Credit
>  internal transfers: Debet
>
> If you connect the internal transfers account with AR_paid, AP_paid, you can 
> "pay"
> the real invoice using the internal transfers account as a pseudo checking 
> account.
>
> Marjan Waldorp,
> tux4u.nl
>
>
> Joseph wrote:
>> On 03/09/10 14:15, Chris Travers wrote:
>>> On Tue, Mar 9, 2010 at 11:32 AM, Joseph <[email protected]> wrote:
>>>> How to handle correclty pre-paid inventory?
>>>>
>>> Can you be more specific?  What do you mean "pre-paid?"
>>>
>>> Best Wishes,
>>> Chris Travers
>>
>> What I mean is you pay for supplies/goods first before you receive them.
>> Eg. Supplier sends me "proforma invoice" and I pay it but I don't receive 
>> the goods till maybe after two months; meantime I have to reconcile the bank
>> statement.
>>
>
>
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