Customer Prepayments

Use Sales → Prepayments for a deposit before work starts, a retainer or top-up, or money received before you have issued an invoice. The amount sits as a credit on the customer's account until you put it towards an invoice.

Record a prepayment

1. On Sales → Prepayments, click New prepayment.
2. Under Prepayment Details, choose the Customer, the Date received, the Amount, the Type (Prepayment, or Overpayment when the customer paid more than they owed) and the Currency.
3. Under Payment, choose Paid into: the bank or cash account the customer paid into.
4. Add optional Notes and click Record prepayment.

Anchor posts debit the bank account, credit Customer Deposits (a liability: you owe the customer goods, services or a refund).

When the deposit shows on your bank statement, use ⋯ → Find & match on the bank line to link it to this entry rather than categorising it again.

Put it towards an invoice

1. Open the prepayment and click Apply to an invoice.
2. Choose the Invoice and the Amount to put towards it.
3. Click Put towards the invoice.

Anchor posts debit Customer Deposits, credit Accounts Receivable, and reduces the amount due on the invoice. No money moves through the bank again. The prepayment shows the Original amount, what is Used so far and what is Available to use; you can apply the rest to later invoices.

Find prepayments

Filter by Available, Used or Cancelled, search, limit to a date range, and sort by date, amount or remaining credit. The totals show what was Received and what is still Available to use.

Related

• Payments: leftover money from a payment that already settled an invoice
• Credit notes: reduce what a customer owes on an invoice you already issued

MCP tools

list_customer_credits, get_customer_credit, create_customer_credit, apply_customer_credit.