How to I account for my prepaid inventory when I have 4 shipments being received? Here is my scenario:
I have created a December PO with the amount of $100,000 showing that the items will go to Inventory - Finished Goods when the bills are created. I created a check for $10,000 and posted it to prepaid inventory in December.
It is now January and we received two shipments. Each shipment is $25,000 and the prepaid inventory received is $2,500 each. I entered each invoice from the vendor and then I attempted to applied $2,500 to each bill from the "check" which in turned became a bill payment. The credit on the check/bill payment is showing $5,000.
Now to my dilemma, my prepaid inventory total of $10,000 from December has disappeared. How to I get back having $10,000 prepaid inventory in December? I need to have $5,000 of the prepaid inventory posted on 2 invoices with $2,500 each (which moves the $2,500 prepaid inventory to finished goods). and I need to have the remaining $5,000 credit in prepaid inventory to post against the 2 upcoming shipments.
