Why don't you just check the prepayment box on the receipt?

Shirley Byard

something seems off about your question.  a vendor payment (like for a credit) should affect AP not AR, right?  Can you provide more detailed information about what you expect to see and what you're doing?   We take a lot of prepayments from customers, so I think I might be able to help.

I meant customer not vendor.  Part of the deposit is for our AR but the other part is an advance so I was trying to figure out how to post it.  I never use prepayment option so Im not sure how it will affect the AR on the trial balance.

Not familiar with the prepayment box in Sage 50

ok! 

you won't be able to enter a single receipt as part AR and part advance.  I split my receipts up using the suffixes "-a" & "-b" in the check/ref# when I have a payment going to multiple things.  the prepayment box creates a negative AR item in the 'apply to invoices' section that you can later apply to invoices.  I track our customer prepayments in a separate liability account (instead of the default negative AR entry it would otherwise make) by clicking 'journal' and changing the AR account to our liability account number.  If you let it default you will end up with negative AR balances for customers with outstanding prepayments.

Did any of that help?  I think using the prepayment checkbox will make an entry for an advance like what you're trying to get.  Make a test entry using the prepay button and if it doesn't help, I'll try to respond again on Monday if you reply with questions.

Thanks for your help. I will try to get it worked out.

Josh, I did split my receipts by clicking 'journal' and changing the AR account to our liability account number.  So do you make a journal entry to reduce your liability acct when funds are used?

Just to confirm we're doing the same things:

1. adding a prepayment to customer account (edit journal to debit bank acct and credit customer deposits liability):

if you don't click 'journal' and change the account to credit to your deposits liability account then your A/R will show as negative by the prepayment amount.  otherwise, if you are using a deposit liability account (as we are), that liability account should equal the deposit amount and A/R will be $0 (assuming no other outstanding invoices for that customer).

2. apply the deposit to a customer invoice:

This reduces the deposit liability and A/R by the amount applied ($50 here) when funds are used and marks the invoice(s) as paid.

3. later we enter another invoice 'test inv 2' and apply the remainder of the deposit to that:

in this example this customer's deposit will be completely used up, 'test inv 2' will be marked partially paid, and the customer's A/R balance is the unpaid portion of 'test inv 2'.  The deposit liability account should once again be $0.

Am I addressing the correct issue?  If not or if you're doing something else, Windows Key+shift+S will open the snipping tool to screenshot a portion of your screen which you can save as a jpg file and use insert-image/video/file to include in your response.

Ok, I did not have the prepayment selected.  I will try this and hopefully this help, I will let you know.  Thanks so much for your help.  

fingers crossed for you!