Set Up for Deposits and Pre-payments in Cash-Basis Accounting

To set up accounts for deposits and pre-payments in cash-basis accounting:

  1. In the Home Window, from the Setup menu, choose Wizards and then Modify Accounts.
  2. Use the wizard to create one account in the 1000s with the name Accounts Receivable and another in the 2000s with the name Accounts Payable. If you are unsure what account number to use, check with your accountant.

    3. Note: Once you have entered the name and number for the account in the wizard, you do not need to change any options. You can continue to click Next until you reach the final screen.

  3. In the Home window, from the Setup menu, select Settings, open Vendors And Purchases, and then Linked Accounts.
  4. In the Accounts Payable box, select the Accounts Payable account that you just created, and click OK.
  5. In the Home window, from the Setup menu, select Settings, open Customers and Sales, and then Linked Accounts.
  6. In the Accounts Receivable box, select the Accounts Receivable account that you just created, and click OK.
  7. Enter the prepayment or deposit.