Information on Accounting, Prepayments, and Global Debtor

Information on Accounting, Prepayments, and Global Debtor

This information is the result of testing with Idealpos v9 Build 2, integrated with Xero OAuth2.

The same GL account was set for Account and for Unallocated Payments (in the example, it is an Equity type account, but it can be changed to a Current Liability type account):

A $400.00 pre-payment was then made to an Account Customer, and then an invoice was generated for that customer, which was auto paid because of the prepayment balance.

After posting to Xero, the balance in account 970 was -$396.00, which is a way of tracking the current prepayment account liability in the accounting package:

Other scenarios tested successfully included:
- Prepayment followed by invoice followed by a new prepayment
- Account in debit with invoices, a payment applied but not allocated to said invoices (also a prepayment)

Other info:
If Global Debtor is enabled, then prepayments are not allowed when Cash based accounting is in use. They are allowed if Accrual based accounting is in use.

If Global Debtor is not enabled, prepayments are allowed for both Cash and Accrual based accounting.

In situations where Global Debtor can be enabled, all account invoices and payments are listed under the assigned Global Debtor in the accounting software (the default is POS Debtor).