Chapter 303 Customer Prepayments
Customer Prepayments is an option you turn on to track deposits on customer orders.
Customer Prepayments handles the accounting for money you receive before invoicing. Prepayments post to an Account you set up for keeping track of unapplied payments.
Run a Balance Sheet and A/R Aging anytime, without any clean up to close the period.
Customer Prepayments
Customer Prepayments is a set of features to correctly handle deposits on your orders. If you receive payments on orders to apply to future invoices, those are Prepayments.
If you turn on Prepayments in BigBusiness 15, you will have all the tools you need to handle the accounting, importing, auto-applying, and reconciling of customer deposits.
To enable Prepayments, fill in the Prepayment Category in the Customer Prefs tool. When Prepayments are enabled, on the Payment you can choose Prepayment
Customer Prepayments
Customer Prepayments automatically post deposits or pre-payments from customers to a liability account, making it easier to manage prepayments and audit accounts receivable. (6183)
To create a Prepayment Category, use the Account Card tool to create one assigning an Account Type of Current Liability.
Once the Prepayment Category is set, a Receive Money from a Customer will show a pulldown with "Payment" as the default and "Prepayment" as an option.
Choosing "Prepayment" on the Receive Money window will change the accounting for the Receipt. It will automatically post to the Prepayment Category on the Date of the Receipt and back to Accounts Receivable Account on the Date of the Invoice(s) it ends up being Applied to.
A/R Aging Summary with Prepayments
The A/R Aging report will provide a listing of open receivables as of a specific date. This report includes a Customer Search to report only specific customers. This report includes unapplied Payments and totals unreported customers to simplify reconciling.
This report also includes Prepayments