Use Cases

Customer and Vendor Prepayments, Deposits, and Retainers

• Allows prepayments at a customer or vendor level.
• Treats prepayments as a pool of funds rather than having to individually assign prepayments to specific invoices and lines.
• For Sales, we book prepayments to AR and Deferred Revenue (Typically a Balance Sheet Liability Account)
• When paid will Debit Cash and Credit AR
• As prepayment retainer funds are utilized on future Sales Orders/Invoices, it will Debit Deferred Revenue and Credit Revenue, leaving the receivable amount on the invoice as $0 (assuming we had enough prepayment to fully cover the invoice)
• Have the ability to also skip using prepayment funds on orders/invoices if you want on a transaction by transaction basis
• Have the ability to use funds to pay the order/invoice partially
• For Purchasing, we book prepayments to AP and Prepaid Expenses (Typically a Balance Sheet Asset Account)
• When paid will Debit AP and Credit Cash
• As prepayment retainer funds are utilized on future Purchase Orders/Invoices, it will Debit Expense and Credit Prepaid Expense, leaving the payables amount on the invoice as $0 (assuming we had enough prepayment to fully cover the invoice)
• Have the ability to also skip using prepayment funds on orders/invoices if you want on a transaction by transactions basis
• Have the ability to use funds to pay the order/invoice partially

Sales and Purchase Order Prepayments - Enhanced Flexibility

• Allows prepayments at an order level or job level
• Allows multiple prepayments to be associated to a single order
• Does not lock down lines after the prepayment is invoiced or received
• Added flexibility allows users to work with prepayment invoices in a more efficient manner

Reporting

• Ability to generate prepayment balance lines on documents - shows them how much they have remaining when they receive the document
• Ability to view AR Dashboard for Customer Prepayments
• Ability to view AP Dashboard for Vendor Prepayments
• Indicator on Customer and Vendor Ledger Entries to Indicate Document is a Prepayment Document
• Indicator on Posted Sales and Purchase Invoices to Indicate Document is a Prepayment Document

Setup and Overview

Customer Prepayments, Deposits, and Retainers