Go to Cash flow ➔ Payments ➔ Prepayments & transfers, and then select Prepayment.
A prepayment means the deposit or payment of all or part of a debt prior to its due date. This means a company prepares a payment (via electronic file transfer, cheque or any other payment method) and this payment is then authorized and processed. At this stage it is termed as "payment in transit" if the relevant setting is selected. For more information, see Bank Settings. Once the bank statement comes in, the payment that was created for this prepayment is matched against the actual cash outflow.
Prepayments is created in the purchase/sales orders or (by creating terms) manually at Cash flow ➔ Payments ➔ Prepayments & transfers.
The information in this document is based on product update 406. If you have versions lower than this, certain features explained here will not be applicable.
Select Prepayment or Transfer to determine which entry you want to make. The following describes prepayment.
Type or select the cash instrument that you want to make the prepayment from. You can create cash instruments at Cash flow ➔ Cash instruments ➔ Maintain. For more information, see Creating and Maintaining Cash Instrument.
Type the prepayment amount, and type or select the currency you want to pay with. At Due date, type or select the due date of the prepayment. By default, this will be the current date.
Type the payment reference of this prepayment for easy reference. This will increase the traceability of the prepayment.
Select the method of payment. You can choose from Cash, Cheque, Letter of credit, or EFT. A Bank box will be available if you select Cheque or Letter of credit at Method. At Bank, type or select the number of the bank cash instrument. At Payment date, type or select the payment date for the prepayment.
Type or select the purchase order number that you are making the prepayment for. At Your ref., type the supplier reference for the prepayment. This reference contains the external number of the transaction which is given by the supplier.
Type or select the creditor account that you want to make the prepayment for. Once you have selected the creditor, Account changes to Creditor.
This is automatically filled in with the address of the selected creditor at Account.
This is automatically filled in with the creditor bank account that you have entered at creditor maintenance. Once you have selected the creditor at Account, Bank account changes to Creditor bank. Alternatively, you can click to select a different bank account.
Note: If you have selected a creditor account at Creditor account under the Finance section at the creditor maintenance screen, then the selection at G/L cannot be changed to another creditor’s general ledger account.
The amount is automatically filled in based on the company’s default currency once you type the prepayment amount at Amount / Due date. At XRate, you can type or select the exchange rate between the default currency and the currency at Amount / Due date.
Click this to type a note relating to the prepayment. Type a note, click Timestamp (optional), Save and then Close to exit.
This is automatically filled in with the creditor G/L account once you type or select a creditor at Account.
Click this to add an attachment to the prepayment. For example, you can attach the purchase order or other documents to the prepayment.
Click this to go to creditor maintenance where you can update relevant information about the creditor. For more information, see Creating and Maintaining Creditor Account.
Click this to go directly to the creditor card of the selected creditor. For more information, see Viewing Creditor Card.
Click this to link a purchase invoice prepayment term to the payment made from the bank/cash instrument. This is enabled once you have clicked Save to save a prepayment. For more information, see Linking Prepayment.
Click this to create a new prepayment.
Click this to save a prepayment. Once a prepayment has been saved, this will be disabled.
Click this to exit.