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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Deposit/Prepayment Pro...
Small and medium business | Business Central, N...
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Deposit/Prepayment Procedure

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Posted on by SL_GP_BC_123 751
I am currently developing best practices for managing deposits in Business Central and would appreciate your insights. Here is the scenario: Our customer receives deposits for future services. In their current system, these deposits are recorded as prepayments and appear as negative items on the customer's aging report. This entry results in a debit to the bank account and a credit to a deferred revenue liability account. 
 
Subsequently, an invoice is created, which debits receivables and credits revenue in the usual manner. At this stage both the prepayment and invoice appear on the aging. At some point, the prepayment is applied to the invoice, which offsets the deferred revenue and receivables accounts, with a debit to deferred revenue and a credit to receivables. 
 
I understand that we can implement a similar process in Business Central, but I am seeking guidance on the necessary configuration. The customer has no need for sales order processing and ideally we would like to accomplish this through receivables.  Does anyone have any advice or suggestions on how to achieve this effectively? 
 
Please advise.
Categories:
Dynamics 365 Business Central
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  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 91,817 Super User 2025 Season 2 on at
    Deposit/Prepayment Procedure
    Hi, I think you can try sales journals first.
    Business Central 2024 wave 1 (BC24): Use deferral codes (deferrals posting) in purchase and sales journals
     
    Hope this can give you some hints.
    Thanks.
    ZHU
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 29,118 Super User 2025 Season 2 on at
    Deposit/Prepayment Procedure
    You can use the prepayments functionality in the system as it can do everything you're looking for - Set up prepayments - Business Central | Microsoft Learn. The configuration is not that complex, you need to enter a prepayment account when you set up posting groups. 
     
    If you don't want to use sales orders, you can just do everything through journals but it will be a lot more work. 
     

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