Prepayment Receipt Setup and Process


1. Define system parameters in order management setup
“Allow Multiple Payments” as “Y”

2.  Define receipt class and payment method and assign document sequence (Optional)

3. Define payment term with “Prepayment” option enabled.

4. Define receivable activity with “Prepayment” type


1. Create sales order and book it.

2. Go to Actions -> Payment, create prepayment. A prepayment type receipt will be created in AR.
Dr. Cash/Bank
Cr. Prepayment (Actually a liability account)

3. Release, pick confirm, ship confirm sales order and run autoinvoice and prepayment match program in AR.  AR invoice is auto created and applied with prepayment.
Dr. Receivables
Cr. Revenue
Dr. Prepayment
Cr. Receivables

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