Processing Pre-Payments in SMARTer Manager

Processing Pre-payments in SMARTer Manager

Method A:

1. Upon receipt of a prepayment, create a debit transaction in the checking account. Go to Accounting/Checkbooks/Checkbooks. Click on the Debits button and create a new debit. On the accounts distribution section, post the amount to your prepayments account. This will debit checking and credit the prepayments account.

2. Then create a Credit in the Accounts Receivable. Go to Accounting/Accounts Receivable/Invoices & Credit and add a new credit. The account code on the item is your prepayment account. Make sure to print the credit so it creates the appropriate journal entries.

3. Next, when you ship the item, it will create an invoice. This will debit AR and credit Sales.

4. Finally, payment of the invoice. Create a deposit. Apply the outstanding credit created in Step 2 to the invoice created in Step 3. This will debit checking and credit AR.

Method B:

1. Upon receipt of a prepayment, in Accounting/Accounts Receivable/Invoices and Credits, create a manual invoice for the prepayment. On the item, the account used is the prepayment account. This will debit AR and credit the prepayment account.

2. Create a deposit applying the prepayment to the invoice created in step 1. This will debit checking and credit AR.

3. Again go to Accounting/Accounts Receivable/Invoices and Credits and create a manual credit for the prepayment. Again, on the item, the account used is the prepayment account. This will credit AR and debit the prepayment account.

4. When you ship the item, it will create an invoice for the full amount. This will debit AR and credit Sales.

5. Finally, payment of the invoice. Create a deposit. Apply the outstanding credit created in Step 3 to the invoice created in Step 4. This deposit will debit checking and credit AR.

Method C:

1. Upon receipt of a prepayment, in Accounting/Accounts Receivable/Invoices and Credits, create a manual invoice for the prepayment. On the item, the account used is the prepayment account. This will debit AR and credit the prepayment account.

2. Create a deposit applying the prepayment to the invoice created in step 1. This will debit checking and credit AR. (Note – Steps 1 and 2 could be replaced with Step 1 in Method A)

3. On the job, create a negative charge. In the account code field, use the prepayment account.

4. When you ship the item, it will create an invoice for the amount minus the negative charge. This will debit AR and the prepayment account and credit Sales.

5. Upon receipt of payment, create a deposit. This will credit AR and debit checking.