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What happens to the prepayment of a prepaid customer order?

How do I set up and work with customer prepayments?

  • The process of setting up and working with customer prepayments consists of the following basic steps. Create a customer posting profile for prepayments. Set the Posting profile with prepayment journal voucher parameter. Create a customer payment journal, and select the Prepayment journal voucher check box on each line.

What is a prepayment in accounting?

  • A “Prepayment” is considered an asset to the business until such a time as the goods or services have been received. So, the payment or the recognition of the purchase will be allocated to the “ Prepayments” asset account initially. Some examples of common prepayments are:

How do I create a pre-payment voucher for a customer?

  • Create a customer posting profile for prepayments. Set the Posting profile with prepayment journal voucher parameter. Create a customer payment journal, and select the Prepayment journal voucher check box on each line. Post the customer payment journal.

image-What happens to the prepayment of a prepaid customer order?
image-What happens to the prepayment of a prepaid customer order?
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