The idea behind Prepayment Adjustments is to easily adjust the prepayment balance of multiple customers accounts at once.

Prepayment Adjustments are used most often at the end of the season to move any remaining prepay dollars into customers' regular accounts (which turns them into unapplied credits). They may also be used when single customer is just a little bit short of prepay dollars to fund their final invoice of the season (the threshold for a little bit is for your company to decide) and you want to just "top up" their remaining prepay balance by a few cents or dollars to cover the shortfall.

If you are reducing the prepayment balance of a single customer, you may prefer to Transfer Prepayment Funds (which does exactly the same thing from the customer's account).

Prepayment Adjustment Business Rules

limited to active customers only

New Prepayment Balance cannot be negative

uses today as the adjustment date (no back- or future-dating)

Prepayment Adjustment Payment Type must be set (for increases only) and selected GL account must be active

Location must be active

comments are required

prepayment adjustments can be edited and deleted, but not reversed

 

Setup

Before you can start making prepayment adjustments, there's a couple of things to setup.

Add a new AR Payment Type to use for Prepayment Adjustments.
You may also want to create a new GL just for this payment type.

Specify this same payment type as the Prepayment Adjustment Payment Type in company config options.

Adding Prepayment Adjustments

To add prepayment adjustments
* indicates a required field (other fields are optional)

Navigate to Accounts Receivable > Manage > Prepayment Adjustments.
The Customer Search window opens.

Find the customer using the various search criteria (or just click Search to retrieve them all).

Type the customer's New Prepayment Balance in the far-right column.

Decreasing a customer's prepayment balance works exactly like transferring prepayment funds t to their regular account: two postings will appear on the customer account, one that reduces the prepayment balance and one that increases unapplied credits.

Increasing a customer's prepayment balance creates a single posting on the customer account increasing their prepayment balance (but remember - they didn't actually give you any more money).

Select a Location*.

Type a Comment* (the reason for the adjustment - end of season, etc.).

Click Save.
A message appears with the number of customer accounts adjusted.

To edit or delete prepayment adjustments

Navigate to the Customer's Account.

Select the Prepayment Adjustment on the Account History tab.

Click Edit or Delete (you'll be asked to confirm the deletion with a reason for deletion).
Deleted prepayment adjustments that increased a customer's prepayment balance will appear in the Audit section of the Cash Out report under Deleted Prepayments.