What are the differences between the Transaction Types in AP Payments?
When making a Payment Entry in Accounts Payables, there are four Transaction Types available for selection:
Normally, the default Transaction Type is 'Payment', however, this can be changed in AP Setup / Options on the Transactions tab.
Payment - this type is used to record a check to pay outstanding transactions that have already been previously posted.
Prepayment - pays for a purchase before the invoice has been received or posted. When the invoice is posted, Accounts Payable is able to automatically apply the prepayment to the invoice provided the Apply To document number is specified at the time of entry of the prepayment.
Apply Document - this type is used to apply a posted prepayment or credit note against an invoice, debit note, or interest charge.
Misc. Payment - allows the user to create an invoice and issue a check all in one step. It is also the only way to issue a check to a person or company for a one-time occurance, so that no vendor record needs to be setup. The distribution details of the purchase is entered in the same way as for an invoice. An invoice number must be assigned a the time of entry of the Misc. Payment.