Note prepayments

Note prepayments are customer payments that reduce the balance on the principal of the note. When you receive customer prepayments for contract notes, you can immediately record and release each prepayment.

Updating the General Ledger prepayment account

Note: For instructions on using journal-control inquiry, see the General Ledger User Guide.

After you create and release prepayment records, you can run Prepayment Update (FR195) to create general ledger transaction records to debit cash and to credit the note asset account. You can use the journal-control inquiry in the General Ledger application to view the interfaced transaction records.