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Prepayment

Do you know what a customer prepayment is?

This button is used to account for payments received from customers, prior to the completed transaction. This will create a current liability as it is revenue earned from a transaction that is yet to be completed. Hence the money received has not yet been earned. It is important to differentiate between revenue that has been received, and those that have been received but have not yet been earned i.e. no invoiced transaction, to ensure the flow-through to the accounts is appropriately.

After entry, Customer Prepayments appear in the customer payment list and can be offset against invoices as they are generated.

How to Enter a Customer Prepayment:

Select the Customer Prepayment button and the Customer Prepayment screen will display.

Select a customer from the dropdown menu, highlighted as above Fill in the payment amount, payment date, Payment method and Bank Account as well as any other relevent information. Select Save in the lower left hand side when you have entered all relevant information.

NOTE: Customer, Bank Account and Payment Method are mandatory fields.

Currency Code The currency which will be used for this transaction Payment date Date the payment was made Payment method Means of Payment used (i.e. cash, direct debit, credit card) Reference Number Manually entered reference number Exchange Rate Used for transactions carried out in Foreign Currency Department Allows you to attach the Department to which the transaction relates in order to track profitability / productivity Bank Account Assigns the Account to which funds will be transferred (undeposited funds by default)

When dealing in foreign currencies, the customer must be setup to allow for this. Currencies must be made active with current exchange rates entered.

Currencies may be made active within the 'General' Section, under the 'Foreign Exchange List'

How do you partially process a Customer Prepayment?

Having already entered the prepayment into the system in the Customer Prepayment Button as above Select Payments tab Then Customer Payment Button Select the Customer/Job The list of invoices/prepayments etc will then show Click onto the Payment amount column and type in the amount that is to be applied - then select the invoice the prepayment is to be applied to and either click on Apply if the amounts are the same or click on the amount column and enter the prepayment amount that is to be applied. Select Save