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54.18 Prepayments |
  
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54.18 Prepayments |
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54.18.1 Prepayment (or advance payment) is a settlement, in part or in full, before the invoice due date.
54.18.2 To enter a prepayment,
See Job screen and go to the project you want to enter the prepayment.
In the Invoice tab, click "New Invoice" button.
Enter an invoice line item with a description of "Prepayment" (or any description that helps you track invoices that are prepayments).
Enter the "Sales/Income" GL account.
Enter the prepayment amount in the invoice amount.
Close the invoice screen.
In the Invoices tab listing, double-click the "Receipts" column to receipt the invoice.
Depending in your accounting procedures, you can now export the invoice to your accounting package.
NOTE:
When you export them now, the prepaid invoices are considered sales/income in your accounting package. Ensure you journal any outstanding prepaid invoices (ie. those for which the work has not been done) from sales/income to liability account as to avoid being considered as sales/income in the wrong financial period.
When the work is done,
Allocate the timesheets and disbursements to the prepaid invoice.
See your accounting package and locate the prepaid invoice and journal it back to the sales/income account.
When refunding the prepaid amount,
Delete the prepaid invoice and receipt in Latitude.
Go to your accounting package and adjust the sales/income/liabilities account accordingly.