AccountingBLOCK - Accounting Forums

New user. I have set up a number of deposits with vendors (cash-in-advance, retainers) with vendors and have established them as "Deposits - Other Current Assets". When actual bill came I entered as Bill and then I tried to "pay with" this Deposit Account, but program doesn't permit as it is not a Bank category account.

If I do Journal Entry the deposit account and A/P account are correct, but bill stays and ages with A/P. I thought about designating Deposit Accounts as "Bank Category Accounts", but thought there might be an easier way.

If you use your method, you have to go to Pay Bills, select the bill and apply credits.

Or, you can write the original check using accounts payable and then, when the bill comes in, there will be a credit to apply.

I find the second method easier, but you would have to move any unapplied pre-payments to a current asset account at year end to give you accurate financial statements.

You need to Pay the bill. If you did a G/L journal entry and moved the Deposit to Accounts Payable and used the Vendor Name, the credit will show up in the Use Credits box in the Pay Bills screen. Apply the deposit that way.