Taxable persons are required to present their partners with invoices for pre-payments made. Furthermore, they are required to keep a ledger of prepayments received in order to ensure the correctness of tax records. For this purpose, create documents using the document type for prepayments received.

Prepayment received documents do not effect warehouse records, so you can also create prepayment invoices by Adding Customers' Orders to Prepayment Invoices. Of course, this type of adding does not count as a realization of the customer's order.

To keep track of prepayments received, use the following procedure:

1. Post a Statement from a Bank Account

Post a statement from a bank account for a prepayment received. You've used the number of the quotation of your prepayment for the linked document:

2. Create an Invoice for a Prepayment Received

It can be created using the document type for prepayments received:

The date of the invoice for the prepayment is also the date the amount will be included in tax records!

Print the invoice and present it to the payer:

3. Posting an Invoice for a Prepayment Received

By Automatic Posting of Issued Invoices or using the shortcut in the right click menu, post the invoice for the prepayment received.

Use the internal number of the document for the linked document. The journal entry lines you've created:

4. Create an Issued Invoice

When you finally issue the goods or services for which you received the prepayment, create an issued invoice using the regular procedure.

5. Link the Issued Invoice to the Invoice with the prepayment (Negative Prepayment Invoice)

When you create an issued invoice, in the Prepayments tab choose the desired prepayment and click Confirm. This way, a negative prepayment invoice is automatically created:

The prepayments received ledger will display the settled balance of received prepayments and negative values from the negative invoice for the prepayment.

When you print the invoice you've linked with the prepayment, the prepaid amount and remaining values for the payment will appear at the bottom of the invoice. You can also create a cash receipt for a cash payment ......... 

6. Automatically Post the Negative Prepayment Invoice

To fill in the linked document, select linked document 1. This is where the program automatically enters the number of the prepayment invoice from which the negative prepayment invoice was created. This way, the positive and negative prepayment invoices close or balance each other. (If you do not do this, you will later have to link both lines - see Closing - Manual). The journal entry lines you've created:

7. Automatically Post the Issued Invoice

The journal entry lines you've created:

8. Link the Prepayment Received with the Issued Invoice

In the Closing Outstanding Prepayments document, link the prepayment received with the issued invoice:

The journal entries created by the automatic closing of outstanding prepayments:

Of course, you can carry out this procedure differently. You can, for instance, create an invoice for a received prepayment before posting the bank statement. If you do this, you will use only the number of the prepayment received (internal number) for the linked document.

General Functions:

• Prepayments Received

• Adding Customers' Orders to a Prepayment Invoice