Customer Prepayment

Overview

The Customer Prepayment feature is used to manage customer deposits before goods and services are delivered. Prepayments are a percentage of the Sales Order total amount. Prepayments are set up with a Goldfinch Payment Term record, which is then assigned to a Customer Account.

Setup Customer Prepayment Feature

To set up the Customer Prepayment feature, the following steps must be completed:

• Create a Customer Prepayment GL Account.

• Create a Payment Term with a default Prepayment %.

• Assign the Payment Term to the Customer Account.

• Create a Customer Prepayment Service Item.

Note: Customers can only have one Payment Term assigned to their Account. If necessary, the Payment Term may be changed directly on the Sales Order.

• The same Customer Prepayment GL Account is used for all Prepayment Terms.

• The same Customer Prepayment Service Item is used for all Prepayment Terms.

Creating a Customer Prepayment GL Account.

Open the App Launcher. Search for GL Accounts.

Click on New to create a new GL Account.

Populate the following values in the New GL Account form:

Click Save.

Creating a Payment Term with a Default Prepayment %

Open the App Launcher. Search for Payment Terms.

Click on New to create a new Payment Term.

Populate the following values in the New Payment Term form:

Click Save.

Assign the new Prepayment Payment Term to the Customer Account

Open the App Launcher. Search for Accounts.

Click on the Customer Account that you’d like to assign the Prepayment Payment Term.

Edit the Payment Term field and enter the Prepayment Payment Term that was previously created.

Click Save.

Creating a Customer Prepayment Service Item.

Open the App Launcher. Search for Items.

Click on New to create a new Item.

Populate the following values in the New Item form:

Click Save.

Next, we will need to set up the Account Posting Setup Record.

On the new Z-Vendor Prepayment Item, find the Account Posting Setups related list and click on New.

In the New Account Posting Setup form, populate the following values:

Click Save.

Finally, we will assign the new Z-Customer Prepayment Item to the Company Setup record.

Open the App Launcher. Search for Company Setup.

Click on the Company Setup record. Normally, your Salesforce instance will have only one Company Setup record.

Finally, assign the new Z-Customer Prepayment Item to the Customer Prepayment Item field.

Click Save.

How to use the Customer Prepayment Feature

Create a new Sales Order for the Customer with Prepayment Payment Terms.

• Previously, the Prepayment Payment Term was set on the Customer Account.

• By default, the Sales Order is populated with the Payment Term and Prepayment % from the Customer Account.

• Goldfinch allows you to modify the Prepayment % directly on the Sales Order as needed.

After entering all Sales Lines, click on the Create Prepayment Invoice button to create a Prepayment Sales Invoice.

The Prepayment Sales Invoice is a standard Goldfinch Sales Invoice with a Customer Prepayment Service Item added as a Line Item.

The prepayment amount is Sales Order Amount (Including Tax) * Prepayment %.

The prepayment tax amount is Sales Order Tax Amount * Prepayment %.

The Prepayment Tax Amount will be posted to the Account Sales Tax Payable set up on the Company Setup table.

Multiple Prepayment Sales Invoices may be created for a Sales Order. The total prepayment amount for all Prepayment Sales Invoices cannot exceed the Sales Order’s Amount (Including Tax).

Click on Post to post the Prepayment Purchase Invoice.

When the Prepayment Sales Invoice is posted, the Customer Prepayment GL Account that was previously created will be credited.

The Prepayment Sales Invoices can now be sent to the Customer. The Customer Payment can be applied against the Prepayment Sales Invoices.

If you prefer to debit a Undeposited Cash Account instead of the standard AR Account, you can update the Payment Term on the Sales Invoice as follows:

• Check Bypass AR field.

• Populate Account Undeposited Cash, with a regular GL Account, or a Bank GL Account.

Read Payment Term for more details.

After delivering the goods and services, make sure the Whse. Receipt is created and posted. Create the final Sales Invoice using the standard procedure.

GoldFinch will total up all prepayment amounts and insert a line to the final Sales Invoice to reverse the total prepayment amount.

When the final invoice is posted, the Customer Prepayment GL Account is debited.

Correcting Mistakes

You can unpost the prepayment invoice and correct any mistakes before you post it again. If you no longer need the prepayment invoice, you can unpost the invoice and then just delete it.