Define your following accounts:
Liability, Prepayment, Future Dated Payment, Discount-taken, PO Rate variance Gain/Loss, Expenses Clearing and Miscellaneous.
Mandatory Account in Account Payables
Liability
Prepayment
Discount Taken
Po Rate Variance gain
Po Rate variance Loss
Liability Account- Account Payables used liability account as a default account. Liability account for all new supplier which can be over hidden. Liability
account is credited in invoice transaction and debited in disbursement transaction.
Pre-Payment Account - Prepayment account is used for supplier site invoice . Prepayment account is debited in disbursement transaction.
Discount Taken Account- Account Payables use this account to record the discount taken on payment. Discount taken account is debited in disbursement transaction.
PO Rate Variance Gain / Loss- Account Payables used this account to record the exchange of the Po rate variance gain / loss for the inventory iteam.
