How do I print a Vendor Check as a Prepayment in Dynamics GP?

Situation: You have a vendor that requires a down payment on a purchase and you need to print a system check before you receive an invoice.

Solution: Use the Select Payables Checks process!

Create a Batch in the Select Payables Checks window. Select the Edit Check button to enter the Edit Payables Checks window. Select the Vendor ID and the enter the amount of the check in the Amount: Unapplied field. Save this to the batch. Select Print Checks and process the batch.

This process results in recording the Check to the Vendor as an unapplied payment and to the outstanding check list in Bank Reconciliation. Later, when the invoice is received, use the Apply Payables Documents window to apply the check to the invoice. If you prefer to let the system apply the check, select to Automatically Apply Existing Unapplied: Payments as part of your Select Payables Checks process. The payment will be applied to an open invoice and reduce the amount paid to the vendor.

This process may seem a bit cumbersome but it is actually very easy and quick to cut a single check to a Vendor with no invoice. The benefits of having this check recorded in the system are well worth the few extra steps.