Practice CS: Entering and applying prepayments

Alerts and notices

It is not uncommon for a client to pay for services before an invoice is generated. In Practice CS, however, there is not a separate procedure used to enter or indicate a prepayment.

Payments are entered in the Receipt & Adjustment Entry screen, whether those payments are made prior to or after the generation of an invoice. Payments that occur after an invoice is generated will be applied to that particular invoice. Prepayments will simply not be applied to an invoice, leaving the payment amount available to apply to some future invoice. Unapplied receipts affect A/R and appear exactly like any other receipts for reporting purposes.

Once an invoice has been created, the prepayment (unapplied receipt) should now be applied against that invoice. This can be done via any of the following methods:

  • You can apply the unapplied prepayment as you do the billing and invoicing process.

    To do this, mark the appropriate options in the Setup > User Preferences > Billing tab:

  • You can apply the unapplied prepayment in the Receipt & Adjustment Entry screen for each client individually.

    To do this, search or filter the Receipt & Adjustment Entry screen to find the original receipt transaction. Then, use the More button More to open the Applied Amounts screen and apply the prepayment to an invoice.

  • You can apply all unapplied prepayments (as well as any other unapplied receipts and adjustments) for all clients at once.

    To do this, open the Receipt & Adjustment Entry screen. Right-click and choose Apply all open credits. This will apply all open credits, for all clients, to outstanding debit items. When you perform this task, credits will be applied to clients' oldest debit items first, moving forward chronologically until the credits have been fully applied.

Was this article helpful?

Thank you for the feedback!