See Prepayments for a general description of closing prepayments.

Whenever posting receivables and payables by departments and/or cost centers (see settings in Administration Panel | Settings | Program Parameters | Financials | General), we would usually like to close posted items by departments and cost centers. To put it differently, if there is department and cost center are specified in outstanding item, you should also specify them in payment of outstanding item.

• reposted outstanding item when it is being closed by prepayment
• reposted prepayment after receiving of prepayment or advances closed by outstanding item

This way you enable that the line is closed not only regarding the account, subject and linked document, but also for department and cost center. The account, subject and linked document and additionally also about the department and cost center are retained in the posted prepayment.

Check Closing Outstanding Items by Departments and Cost Centers in Administration Panel | Settings | Program Parameters | Financials | General.

Having checked Close outstanding items by departments and cost centers in Administration Panel | Program Parameters | Financials | General the list of open documents (that is, a list of outstanding items as well as list of lines marked for closing) are changes that department and cost center are specified in lines. Department and cost center are used in line where closed prepayment is recorded.

Parameter Status	Criteria Used in Searching Amount of Outstanding Item and Closing
	Account, subject, linked document, currency (closing the summary amount of line according to the three criteria mentioned previously)
	Account, subject, linked document, currency, department, cost center (closing summary amount of line according to the fiver criteria mentioned previously)

Closing Prepayments by Departments and Cost Centers

a) Department and cost center are equal in outstanding item and prepayment

Mark the following two lines on the list:

A journal entry is created when closing prepayment:

After closing prepayment, both the line on account 1200 and the one on account 2300 are closed by department and cost center. The total amount of outstanding items (that is, receivables together with prepayments) by departments and cost centers is thus balanced out.

a) Different department and cost center in outstanding item and prepayment

Mark the following two lines on the list:

To close a line in such a way would mean that the trial balance would not be balanced out by departments and cost centers. This can be prevented by first entering department and cost center. Proceed by clicking Select once more. Of course, you can add data subsequently.

Such posting is allowed. Still you are informed about the discrepancy with the following IRIS message (see 4849 Prepayment and receivable/payable do not belong to the same department and cost center!).

Trying to create a journal entry it will be done in the following way:

After closing prepayment, both the line on account 1200 and the one on account 2300 are closed by department and cost center. Trial balance by departments and cost centers will not be balanced out.