Vendor debit balance

In accounting, vendor debit balance means a vendorPayablesVendorA party we buy from whose accountCore ledgerAccountA GL account in the chart of accounts. Always qualify when a bank account is meant. stands in our favor — a prepaymentFoundationsPrepaid expenseCash paid before the benefit is consumed — an asset until it is. "Prepayment" is the UK and IFRS word for the same asset; a customer paying us early is a customer advance or deposit, a liability, an overpayment or a creditFoundationsCreditThe right column. It increases liabilities, equity and revenue, and decreases assets and expenses. not yet used. It is presented as an assetFoundationsAssetA present right of the entity to an economic benefit (FASB CON 8 ¶E16) (a vendor receivable or prepaid), not netted against other vendors' payables.