Which Prepayment Guide Should I Use?
Logistics accounting handles prepayments differently depending on whether the money is Incoming or Outgoing, and whether you need it on the Balance Sheet or the Aging Report.
| If the scenario is... | Direction | Use This Guide | Accounting Impact |
|
Paying a Carrier/Vendor before receiving their bill
|
Outgoing | [Vendor Prepayments (AP)] | Decreases Accounts Payable |
|
Receiving a credit or overpayment from a customer
|
Incoming | [Customer Credits (AR)] | Decreases Accounts Receivable |
|
Receiving a formal deposit for a future shipment/project
|
Incoming | [Customer Liabilities (G/L)] | Increases Liability |