Prepayment really pi**ing me off

Hello all you kind accounting-minded people out there!

Using: Peachtree Accounting 2005

I really can wrap my brain around this prepayment thing, the way PT has it setup.

Here's the scenerio: Customer calls me to perform a service. I go meet with them and give them an estimate (not a PT quote). I tell them it will be $100 and I require a $25 deposit, they hadn me a check.

I go back to my computer and fire up PT I enter a new receipt for $25 dollars for that customer and check "Prepayment".

Sometime later, I perform the service, and just like my estimate, the final const is $100.

Now I go to my computer again and enter an invoice. I enter the charges of $100.

But wait! They alread paid me a $25 deposit. That is nowhere to be seen on the invoice. It seems to me, this should be deducted under area of "Other Applied Credits" and the Invoice should show charges of $100 with a balance due of $75.

Just how is this supposed to be accomplished?

TIA BW

Reply to
Brian W
Loading thread data ...

Brian,

The statement (rather than the invoice) is where the balance will show up that takes into account all the pluses and minuses to that customer's account.

We don't like all the paper involved in issuing both statements and invoices, so we use the option on the statement of listing invoice details, and the customer only sees a statement. This works out fine for us, and may be one way to get the kind of thing you were looking for.

-- Erich PPA 2004, Win98SE/WinXP, Win2K Server

Reply to
Erich Knobil

Dear Brian,

I am not an expert on peachtree, but I would enter PA in the invoice and put it on HOLD. When I finish the work, I would make it active and send the customer the invoice.

I hope that it helps you.

Best regards, Gulab Gidwani

Brian W wrote:

Reply to
Gulab

Enter your $100 invoice as you normally would do. Then go into Receipts and apply the $25 deposit to that invoice. The customer's balance on that invoice is now $75. When they pay you, go into receipts again and apply the remaining payment to that invoice.

Reply to
Laura

In addition to the other suggestions, I offer:

Create a liability account called something like "Customer Advance Payments" or "Customer Pre-Payments on Account" or whatever you like. Use the Receipts routine to take in the $25 deposit, making sure the postings are debit "Cash", credit "Customer Advance Payments" (no need to check any "Prepayment" box).

When it is time to > Hello all you kind accounting-minded people out there!

Reply to
Ralph A. Jones

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.