Generally, users prepay an Invoice or apply cash/credit card payment against an Invoice that Sage 100 (Earlier known as Sage MAS 90/200 ERP) system does not support. Thus, in this blog we would see how to create AR Prepayments in Sage 100 ERP.
By following some simple steps in Sage 100 ERP, users would be able to create a prepayment AR entry, which will help with the payments that could not be matched with a specific Invoice, or of any advance payment which is received before an invoice is issued.
Such transactions are recorded as an Invoice with a credit balance i.e. after an Invoice is issued for which prepayment is made partly or fully. Thus the prepayment amount would get deducted/reduce or nullified from the Invoice balance.
To create AR Prepayment Entry in Sage 100 ERP, follow the below mentioned steps:
- Select Accounts Receivable Main menu > >Cash receipt Entry.
- In cash Receipt Entry, enter the Customer number with check number and the amount prepaid in the Amount Received field.
- Navigate to Lines tab, and enter a future Invoice Number and click on tab. A dialog box will appear asking you whether the transaction is a prepayment.
- Click on “Yes” and “Accept” button to record the transaction.
Thus a Pre-payment entry is created for a future Invoice.
Note: Use this same Invoice number while creating an invoice for this customer; enabling system to apply the pre-payment to the Invoice automatically.
Sage 100 System is designed to match Invoice number with the extension -PP to the same invoice number with the extension -IN or -DM. By using same invoice number for prepayment and Invoice, now Users will not need to manually apply these Invoices using Cash Receipts Entry.