Prepayment Invoices: Generated Transactions
As you process a prepayment invoice, you start by creating and releasing this prepayment invoice. Then you apply a payment to the prepayment invoice, and finally, you apply the prepayment invoice to the AR invoice. To track the movements of invoice balances, including taxes, the system generates the GL transactions described in the following section.
Transactions Generated for a Prepayment Invoice
When you create and release a prepayment invoice, the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Specified in the prepayment invoice in the AR Account box of the Financial tab on the Invoices and Memos (AR301000) form | Amount | |
| Prepayment account | Specified in the prepayment invoice in the Prepayment Account box of the Financial tab on the Invoices and Memosform | Amount |
You can view the reference number of the GL batch in the prepayment invoice on the Financial tab of the Invoices and Memos form.
When you apply a payment to the prepayment invoice and release the application, the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Cash account | Specified in the payment document, in the Cash Account box of the Summary area of the Payments and Applications (AR302000) form | Amount | |
| AR account | Specified in the prepayment invoice in the AR Account box on the Financial tab of the Invoices and Memos form | Amount | |
| Pending Tax Payable account | For an applicable tax, specified in the Pending Tax Payable Account box of the GL Accounts tab on theTaxes (TX205000) form | Tax amount | |
| Tax Payable account | For an applicable tax, specified in the Tax Payable Account box of the GL Accounts tab on theTaxes form | Tax amount |
You can view the reference number of the GL batch in the payment document on the Financial and Application History tabs of the Payments and Applications form and in the prepayment invoice on the Application History tab of the Payments and Applications form.
When you apply the prepayment invoice to an AR invoice and release the application, the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Prepayment account | Specified in the prepayment invoice in the Prepayment Account box of the Financial tab on the Invoices and Memos form | Application amount | |
| AR account | Specified in the AR invoice in the AR Account box of the Financial tab on the Invoices and Memos form | Application amount | |
| Tax Payable account | For an applicable tax, specified in the Tax Payable Account box of the GL Accounts tab on theTaxes form | Tax amount | |
| Pending Tax Payable account | For an applicable tax, specified in the Pending Tax Payable Account box of the GL Accounts tab on theTaxes form | Tax amount |
You can view the reference number of the GL batch in the prepayment invoice on the Application History tab of the Payments and Applications form.