Create Prepayment Schedule

Overview

The Prepayment Wizard is designed for the journal needs of the non-account type user. In creating a prepayment schedule, you must carefully identify the items you would enter as prepayment. It is good to inquire people who might know of any unearned revenue.

Steps

1. From the Accounting module, select Prepayment > New Prepayment button from the menu options. The Prepayment Wizard will display.
   
   
   
   
   
   Step 1
   Click Next button to start.
   
   Step 2
   1. The Prepayment Code will be autogenerated.
      
      
      
      
      
   2. Enter the starting date of the prepayment in the Transaction Date field. By default, this is set to the current date.
      
      
   3. Enter the whole prepaid amount in the Amount field then specify the number of times that the prepaid amount will be divided in the Break Amount in field.
      
      
   4. The References 1 field denotes the related records that the prepayment was based on. TheReference 2 field denotes the entity that initiated the prepayment. 
      
      
   5. Enter a Description for the prepayment. By default, this is set to "Prepayment".
      
      
   6. Select the balance sheet posting account for the prepayment in the B/S Account field. By default, this is set to the default Prepayment account.
      
      
   7. Select the profit and loss posting account for the prepayment in the P/L Account field. Select the revenue or expense account to where the prepayment is applied.
      
      
   8. Click on the Next button to continue.
   
   Step 3
   The schedule for the prepayment transaction and their corresponding amounts will appear. You may change the dates and the amounts as needed. Click Next to continue.
   
   
   
   
   
   Step 4
   The actual journals to be done are listed in the wizard for completeness and will be saved to the unposted file. Click Next button to continue.
   
   
   
   
   
   Step 5
   1. You can choose to view the prepayment schedule you created. To view and close the wizard, click Finish button. The Print Preview of the created prepayment will display.
      
      
   2. From here you can print or send the Prepayment document.