In my business it is standard practice to prepay our vendor 1/3 down at time of order, and balance prior to actually receiving the goods. In quickbooks, we do this by writing a check for 1/3 to the vendor on our Accounts Payable account. We then pay the balance by writing a check for the balance to the vendor on our Accounts Payable account.
When we receive items against the PO, it APPEARS that receiving without a bill, and receiving with a bill and then applying the credits both work identically. In the former case, the credits seem to get automatically applied. In the latter case, I have to manually apply them by "paying the bill".
Is there a reason to prefer one method of recieving over the other?
Thanks.