Prepayments
A prepayment is a deposit or payment that is made to a vendor before the invoice is received. For example, a $10,000 down payment can be made on a large equipment purchase of $100,000 before the equipment is received or invoiced.
This list shows how payments are unique from invoices:
- When the payment cycle for a prepayment is complete, an offsetting prepayment credit memo is created. This credit memo can be applied later to invoices that are associated with the payment.
- Prepayments do not have invoice distributions. Expense distributions are created when the invoice is received and matched to the credit memo.
- Prepayments can include a tax amount.