Prepaid Sales Orders

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Posted on by Community Member Microsoft Employee

Hi. Has anyone found a way to record unearned revenue for prepaid sales orders and reverse it once the sales order is delivered? Is there a 3rd party app that assists with this process? Thanks! Serena

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CFROTON 4,710 on at

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RE: Prepaid Sales Orders

So, it really depends upon where you are entering the prepayment.

In OM, you can set up payment types and put in prepayments, but no batches are created until the invoicing process, so this won't work for this.

However, if you make a prepayment in AR, you can set up the prepayment account to be unbilled revenue. Then when the payment application actually occurs, the process will alleviate that account and then hit your income account (as set up in AR setup).

The prepayment account is set up in ARsetup/Payments tab. So is the income account.
Community Member Microsoft Employee on at

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RE: Prepaid Sales Orders

Thanks Carolyn. Here are the steps that I'm looking for.

1. Create a Sales Order

2. Create a Prepayment (Debit to Cash, Credit to Unearned Revenue)

3. Create a Delivery

4. Create a Invoice (This should Debit Unearned Revenue and Credit Revenue if it has already been paid for previously. Not all invoices are prepaid.)

Thanks!

Serena
CFROTON 4,710 on at

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RE: Prepaid Sales Orders

How/where is it that you record the pre payment for the sales order?

I would think you could put in whatever accounts you want to put in there and set up an order type that hits the reversal.

Let me know the exact process, accounts you want hit and I can see what there is for you.