The prepayment module in ERPLY Books has now been renewed. The prepayment process is now much simplier
- Invoices will not create prepayment
- Prepayments are not connected with invoices
- It is possible to add prepayments to different accounts
- Prepayment status will be checked, when prepayments are used
- Using prepayments goes through prepayment status
NB! All examples are based on customers. Because purchase process is the opposite of sales, then all the examples apply to purchases as well.
Adding and using prepayments
How to add prepayments:
- Don’t select any invoices in Open Payables. Click on “Add Payment”- then add the prepayment to the customer.
- (To ERPLY POS & Inventory customers) In the bank import, if you want to pay for an order/ prepayment invoice, then right-click on the payment and click on “Find paid invoice(s)(order)”/”Find paid invoice(s) (Prepayment invoice)”.
- In Bank import, if you want to link a payment with a customer prepayment, choose a payment and then the needed customer from customer cell.
How to use prepayments:
- When prepayments are made in an unlocked period, go to open payables, choose invoice and click on “Add prepayment”. Then add the needed prepayment sum, check the sum and click on “Save”.
- When prepayments are made in locked period:
- Add a negative prepayment to the customer, use the settlements account (It’s the same as adding prepayment, only with negative sum).
- Add a payment to the invoice in the amount of the prepayment, use settlements account.
Prepayments have two statuses:
“Approved” means that the prepayment has been used. An approved prepayment has the exact time when the prepayment was used – that’s important for showing customer history.
Specifics of using prepayments
When using prepayments, ERPLY Books always creates two transactions:
- Initial prepayment
- Using prepayment
When you use prepayments, pay attention that when you are using only a part of the prepayment (e.g. invoice sum is 100 EUR and prepayment is 200 EUR, then used prepayment is 100 EUR), then ERPLY Books divides the initial prepayment into two parts.
VAT for prepayment
VAT is added to the prepayment and to using the prepayment when there is VAT added on customer card.
Prepayment VAT will be added to both transactions: using and adding the prepayment.
Changing the prepayment
Prepayments can be changed if it’s not confirmed (it means, not used yet). When using the prepayment, ERPLY Books automatically locks the prepayment and it’s transactions. Transaction lock means that the user can’t change the prepayment or change the way the prepayment is used. That’s because these two transactions are connected and you can’t change one without the other.
Existing unapproved prepayments can be changed in “Cash In” report.
If you want to change the transaction, then you have to remove the journal lock.
You see it when you try to delete the transaction, the program opens the journal that is locked. The journal lock can be removed when the user changes the journal status to “approved”. Then the program let’s the user change the transaction. But that’s not the best way to do it – when changing the used prepayment the initial prepayment should also be changed.
By default, prepayment accounts are under system accounts:
- System account for customer prepayment – by default, this is set to all sales-related prepayment transactions.
- System account for vendor prepayments – by default, this is set to all purchase-related prepayment transactions.
- Reporting person – will be defined, when prepayment is set to employee. If you want to set some other prepayment to an employee, then do it on the employee’s card (“Purchase” > “Contacts”)
- Prepayment groups:
- It’s possible to add new rows in system accounts. Add the type “Prepayment group”
- When adding a new prepayment group, it’s possible to choose the prepayment account when doing the payment and in the bank import set a separate account for the transaction.
- Saving account of prepayment VAT – It’s needed when you use prepayment VAT and you want there to be a separate saved amount for the prepayment VAT. This can be added under system accounts. Add an account with a type “Prepayment VAT saving account”
Overpaying the invoice
From now on, ERPLY Books will not allow you to make overpayments anymore. The remaining amount will be added to the prepayment account, by default.
Paying back the prepayment
This process must be done manually. Go to “Open Payables” > “Add payment” (When you want to pay back the amount that has already been paid for, choose the appropriate invoice) > Choose customer/ vendor and add the negative amount, that was returned.