How to Apply Prepayment to Invoice in Sage 300

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:

1. Navigate to Accounts Receivable > AR Transactions > Invoice Entry.
2. Select or create an open batch containing the invoice requiring prepayment.
3. Create or select the target invoice for prepayment.
4. 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:

1. Enter the receipt batch number or create a new batch by clicking the New button.
2. Specify the bank account for the prepayment.
3. Select the appropriate payment code.
4. Complete all required fields with payment details.

Payment Processing Integration

Credit Card Prepayments

For organizations using Payment Processing, additional steps are necessary:

1. Verify that a processing code exists for your selected bank.
2. Choose a payment code configured with the SPS Credit Card payment type.
3. 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:

1. Access Accounts Payable > AP Transactions > Invoice Entry.
2. Select or create the appropriate invoice batch.
3. Enter or select the invoice requiring prepayment.

Creating AP Prepayments

After establishing the invoice:

1. Click the Prepay button (available only after adding the invoice).
2. Select or create a payment batch for the prepayment.
3. Complete all necessary prepayment details.

Order Entry Prepayments

OE Prepayment Integration

Order Entry prepayments require special attention as they involve multiple system components:

1. Create an AR receipt batch.
2. Generate an OE prepayment record.
3. Update the OE transaction header.

Technical Considerations

The prepayment system in Order Entry involves three distinct views:

1. AR Receipt Batch View
2. OE Prepayment View
3. 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:

1. Print all necessary receipts for record-keeping.
2. Generate the deposit slips report for receipt batches.
3. Verify the prepayment application in the invoice records.

Modification Options

If changes are needed:

1. Post the invoice first.
2. Access the Payment Entry screen to make necessary adjustments.
3. Review all modifications for accuracy.

Special Considerations

Job-Related Transactions

For job-related invoices and prepayments:

1. The system will not automatically apply prepayments.
2. Manual application is required through the AR Receipt Entry screen.
3. Additional tracking may be necessary for project accounting.

System Requirements

Technical Prerequisites

Ensure your Sage 300 system meets these conditions:

1. Proper user permissions for transaction processing.
2. Configured payment codes and processing codes.
3. Active bank integration for payment processing.

Troubleshooting Common Issues

Resolution Steps

If problems arise during prepayment application:

1. Verify all required fields are properly completed.
2. Ensure batch statuses are open and ready for processing.
3. Confirm bank and processing code compatibility.

Reporting and Tracking

Monitoring Prepayments

Maintain accurate records through:

1. Regular review of prepayment applications.
2. Generation of detailed transaction reports.
3. 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/