Processing Prepayments in IRIS Financials Purchasing

There may be occasions when invoices need to be created for subscriptions or insurances (for example) that are invoiced annually, but the expenditure needs to be split across the relevant accounting periods. For example, an invoice has been received for a twelve month insurance policy starting on 1st January 2019. The invoice should be prepaid over a twelve month period.

The facility to create a prepayment invoice must have been previously set up in the Settings area of IRIS Purchasing. Please see theSetup Invoice Prepayments topic for more information.

  1. Create the invoice in the usual way. Click the Edit icon (grey pencil) to edit the selected line.
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  2. Click the down arrow to show the additional information.

  3. In the Date Range field enter the start and end date (in dd/mm/yyyy format) of the prepayment separated by a hyphen without any spaces. For example, 01/01/2019-31/12/2019.

     

  4. Enter Prepayment in the Prepayment field. The initial P must be a capital letter.

  5. Click the Validate (tick) button then click the Post Invoice button. The prepayment will be posted as a POIN in PS Accounting. The prepayment amounts are calculated by dividing the amount by the number of days and multiplying by the number of months as shown in the following graphic: