Which Prepayment Guide Should I Use? | GoFreight Help Center
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.
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If the scenario is... |
Direction |
Use This Guide |
Accounting Impact |
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Paying a Carrier/Vendor before receiving their bill |
Outgoing |
Decreases Accounts Payable |
|
|
Receiving a credit or overpayment from a customer |
Incoming |
Decreases Accounts Receivable |
|
|
Receiving a formal deposit for a future shipment/project |
Incoming |
Increases Liability |
You might also be interested in:
- Customer Prepayments: Handling Deposits as AR Credits (Credit Note Method)
- Customer Prepayments: Recording Deposits as Liabilities (G/L Method)
- Vendor Prepayments: How to Pay Partners in Advance (AP Method)