We enter in a prepayment for an order and then it gets invoiced. The invoice still says that payment is due. When we look on the order, it says the prepayment is there. What are we doing wrong in our accounting? For examples, please see Invoices 1507 and 3408. Thank you!!
Thank you for letting us know about this, we’ll get back to you in a moment once we have a better idea of what’s going on.
Can you provide the payment number? I’m not seeing a payment associated on the invoice.
When we go into Order 3408.1, there’s are two notations in orange - one says “Order Prepaid ($ amount)” and the other says “Order is no longer Open”…but that’s the only place I’m finding that it shows it.
For Order 1507.1, it shows “Order Prepaid ($ amount),” but I can see the prepayment.
I found out the prepayment entry in the ledger is 58607 for Quote/Order 3408.1.
We’re still looking at this one. It appears to be two separate issues.
On one there was a pre-payment on the Quote but the payment was not completed to create unapplied cash. That unapplied cash created from the first complete payment is what would have been used on the second payment generated for the invoice. Since the related ledger entry has already been reconciled the payment can’t currently be completed. We’re still trying to decide the best path here, but certainly in the future be sure all payments are complete before reconciling them.
For second one it looks like the pre payment was applied on the original Invoice and then it was unbilled? Will add an update we have a fix for this one.
Thank you SO much for your help! Can you tell me what you mean by making “sure all payments are complete before reconciling them”? If they’re showing up in the reconciliation, doesn’t that mean that they’ve gone through the necessary GL channels?
Do you have any documentation that I can read to educate myself on the procedure for customer payments (prepayment, applying payment, completing payment, etc.)?
Here are couple documents related to taking payments.
Thanks so much!!!
I’m sorry…I figured out what you meant by completing a payment. I’m still fairly new at this, so I forgot about the “Payment Complete” teal colored button. I’m still confused though as to why it will show up in the reconciliation if the payment wasn’t completed.
When you update a payment that’s not complete it creates a ledger entry to let you know there is a payment. Completing the payment is what unlocks movement of funds.
A good example might be order 4971.1, that one has a pre payment that has been completed. That created unapplied cash item 194. When the order is invoiced it will create a new payment and apply the unapplied cash amount.
That makes sense. Thank you so much for explaining that! Can you tell me what would be the point of not closing a payment then? In there an instance(s) when we should not close a payment?
If it was a mistake.
So for order 1507 this looks like the best path.
- Go to …/bankreconcile/58/edit and toggle Open / Closed to re-open.
- Click on the checkmark next to the deposit for the pre-payment amount and hit Update once… be sure not to double click. This will un-reconcile the ledger entry and allow the payment to complete.
- Go to the pre payment on the order and click on Payment Complete.
- Re-check the amount under bankreconcile and click update, again don’t double click.
- Close the bankreconcile.
- Go to the Invoice and select Take a Payment
- In the created payment click the check mark next to the Unapplied Cash item and enter the amount from unapplied cash in the applied field next to the invoice.
For order 3408 try this.
- Delete payment number 435 to free up unapplied cash
- Go to the invoice and select take payment
- Select unapplied cash item and match the amount in applied for both the invoice and unapplied cash.
Good Morning - I really appreciate all your help and time! Would you be able to go into A/R Payment 556 for Order/Invoice 3408 to see if I applied the prepayment correctly? Thank you so much!!!
Looks good to me, remaining balance on the Invoice is now $0.00.
YAY!!! Thank you SO much!!! I just finished applying A/R Payment 557 to the invoice…I think. Can you check to make sure this is correct too?
That looks right to me, as long as the remaining balance there is as expected.