What if you created an invoice at the beginning with the full payment schedule, but sent the invoice to a clearing account, instead of revenue.  Once that 'invoice' is fully paid, then move the invoice amount from the clearing account to the Sales account as realized revenue.

What if you created an invoice at the beginning with the full payment schedule, but sent the invoice to a clearing account, instead of revenue.  Once that 'invoice' is fully paid, then move the invoice amount from the clearing account to the Sales account as realized revenue.

Thank you Bob, But we want to keep and account for the prepayments.

The Prepayment Liability Account is different from Receivables Control Account.

At the end of the Month/Quarter/Year Aged Prepayments from A/R = Prepayment Liability Account in G/L which is very crucial to the business.

If Prepayments are applied to an Invoice the above equation disappears