Accounts Receivable Prepayments
Understanding AR Prepayments
When customers make advance payments, Sage 300 allows you to record these prepayments and automatically match them with corresponding invoices. The system applies prepayments automatically to matching invoices during posting, provided neither the prepayment nor the invoice is job-related.
Creating a Prepayment with an Invoice
The process begins in the AR Invoice Entry screen, where you can add one prepayment per invoice. Here's the detailed workflow:
- Navigate to Accounts Receivable > AR Transactions > Invoice Entry.
- Select or create an open batch containing the invoice requiring prepayment.
- Create or select the target invoice for prepayment.
- Click the Prepay button (Note: This button only becomes active after adding or saving an invoice).
Configuring the Prepayment
When the AR Prepayments screen appears, follow these steps:
- Enter the receipt batch number or create a new batch by clicking the New button.
- Specify the bank account for the prepayment.
- Select the appropriate payment code.
- Complete all required fields with payment details.
Payment Processing Integration
Credit Card Prepayments
For organizations using Payment Processing, additional steps are necessary:
- Verify that a processing code exists for your selected bank.
- Choose a payment code configured with the SPS Credit Card payment type.
- Confirm the processing code matches your selected bank.
Accounts Payable Prepayments
Managing AP Prepayments
The AP prepayment process slightly differs from AR but follows a similar logic:
- Access Accounts Payable > AP Transactions > Invoice Entry.
- Select or create the appropriate invoice batch.
- Enter or select the invoice requiring prepayment.
Creating AP Prepayments
After establishing the invoice:
- Click the Prepay button (available only after adding the invoice).
- Select or create a payment batch for the prepayment.
- Complete all necessary prepayment details.
Order Entry Prepayments
OE Prepayment Integration
Order Entry prepayments require special attention as they involve multiple system components:
- Create an AR receipt batch.
- Generate an OE prepayment record.
- Update the OE transaction header.
Technical Considerations
The prepayment system in Order Entry involves three distinct views:
- AR Receipt Batch View
- OE Prepayment View
- OE Header View
Best Practices and Tips
Workflow Optimization
To ensure smooth prepayment processing:
- Always verify the bank account matches the processing code before proceeding.
- Double-check all payment details before adding the prepayment.
- Print receipts and deposit slips immediately after processing.
Error Prevention
Keep these important points in mind:
- You can only add one prepayment per invoice.
- Job-related prepayments require manual application using the AR Receipt Entry screen.
- Cancelled prepayments must be handled before processing.
Post-Processing Steps
Documentation and Verification
After applying prepayments:
- Print all necessary receipts for record-keeping.
- Generate the deposit slips report for receipt batches.
- Verify the prepayment application in the invoice records.
Modification Options
If changes are needed:
- Post the invoice first.
- Access the Payment Entry screen to make necessary adjustments.
- Review all modifications for accuracy.
Special Considerations
Job-Related Transactions
For job-related invoices and prepayments:
- The system will not automatically apply prepayments.
- Manual application is required through the AR Receipt Entry screen.
- Additional tracking may be necessary for project accounting.
System Requirements
Technical Prerequisites
Ensure your Sage 300 system meets these conditions:
- Proper user permissions for transaction processing.
- Configured payment codes and processing codes.
- Active bank integration for payment processing.
Troubleshooting Common Issues
Resolution Steps
If problems arise during prepayment application:
- Verify all required fields are properly completed.
- Ensure batch statuses are open and ready for processing.
- Confirm bank and processing code compatibility.
Reporting and Tracking
Monitoring Prepayments
Maintain accurate records through:
- Regular review of prepayment applications.
- Generation of detailed transaction reports.
- Reconciliation of prepayment balances with invoices.
Conclusion
Mastering prepayment application in Sage 300 requires attention to detail and understanding of the system's various components. Whether processing AR or AP prepayments, following these structured procedures ensures accurate financial records and smooth transaction processing. Regular practice and familiarity with the system will lead to increased efficiency in managing prepayments across all modules.
Remember that proper documentation and verification are crucial steps in the prepayment process. By following these comprehensive guidelines, you can maintain accurate financial records while ensuring efficient payment processing in your Sage 300 system.
Citations: [1] https://help.sage300.com/en-us/2022/web/Subsystems/AR/Content/Transactions/Invoices/Prepayments/EnteringPrepaymentWithInvoice.htm [2] https://help.sage300.com/en-us/2024/classic/Subsystems/AP_2024/Content/Transactions/Invoices/EnteringPrepaymentWithAnInvoice.htm [3] https://www.realisable.co.uk/blog/creating-prepayments-oe-transactions-sage300/ [4] https://www.acutedata.com/how-to-apply-a-prepayment-or-credit-note-to-an-invoice-or-a-debit-note-on-sage-300-accounts-payable/ [5] https://www.greytrix.com/blogs/sageaccpacerp/2014/06/07/pre-payment-creation-through-oe-invoice/