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 Overview

You can prepay an invoice, or apply a payment received to an invoice that is not yet set up in the system. This may be necessary if you have received a payment that you cannot match with a specific invoice, or if a payment is received before an invoice is issued. This type of entry is recorded as an invoice with a credit balance. When an invoice is issued later, the prepayment amount is used to reduce the invoice balance.

When using a prepay invoice to record a payment received before the invoice is generated, use the same invoice number when creating the invoice using Invoice Data Entry. The system is designed to match the invoice number with the extension -PP to the same invoice number with the extension -IN or -DM. By using the same invoice number for both the prepayment and the invoice, you will not need to manually apply these invoices using Cash Receipts Entry. You can also use Match Credits to Open Invoices to apply credits to open invoices.

If the same invoice number cannot be used for both the prepayment and the invoice, the suggested alternative is to use a different numbering system for prepay invoices entered using Cash Receipts Entry. For example, use the date as part of the invoice number to reduce the chance of duplicating the prepayment invoice number.

To prepay an invoice

1. Select Accounts Receivable Main menu > Cash Receipts Entry. If you have batch processing enabled, the Cash Receipts Entry Batch window appears. Enter the batch number and click Accept.

2. In the Cash Receipts Deposit window, enter the deposit number, description, bank code, and deposit date. For more information, see Cash Receipts Deposit - Fields.

3. Do one of the following, depending on the payment type:

   If you are applying a cash payment:

1. In the Cash Deposit Amount field, type the amount of the check and click Accept.

2. In Cash Receipts Entry, enter the customer number and select Cash in the Deposit Type field. Enter the check number. For more information, see Cash Receipts Entry - Fields.

If you are applying a credit card payment:

1. In the Credit Card Deposit Amount field, type the amount and click Accept.

2. In Cash Receipts Entry, enter the customer number and select Credit Card in the Deposit Type field. Enter the credit card entry number for this receipt.

If you are applying an ACH payment:

1. In the ACH Deposit Amount field, type the amount and click Accept.

2. In Cash Receipts Entry, enter the customer number and select ACH in the Deposit Type field. Enter the ACH payment entry number for this receipt.

4. In the Amount Received field, enter the amount of the prepayment.

5. Click the Lines tab. In the Invoice No. field, enter an invoice number not on file in the Open Invoice file, with the suffix –PP.

Note To automatically apply the prepayment to the invoice, the invoice number must be the same.

6. A message appears asking you if the entry is a prepayment; click Yes to default the amount posted to the posting balance.

7. If you entered a credit card or ACH receipt, click the Payment tab, and enter the payment information.

8. Click Accept.

9. Click the Print button to print the Cash Receipts Journal and update the Daily Transaction Register.

   Note Depending on your security setup, the Daily Transaction Register may be automatically printed and updated.

The invoice is prepaid.