Processing Prepayments

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

We strongly recommend reading Overview Of Prepayments before carrying out any prepayments processes.

If you are processing prepayments on purchase order invoices using IRIS Purchasing, for more information, please see Processing Prepayments In IRIS Purchasing.

Before posting any prepayment documents, it is essential to check that all the accounting periods within the prepayment time frame exist, and have been opened. You are unable to post prepayments to the correct periods if the accounting periods are not correctly available and can be timely to rectify.

Prepayments are typically recorded for non order invoices or credit notes.

1. To post a prepayment, complete the applicable document input form.
2. Enter the start and end dates for the prepayment. The dates entered must be in dd/mm/yyyy-dd/mm/yyyy format, for example, 01/11/2022-01/10/2022.
   

3. When you have entered all the required details, press F5 or select POST to post the document. Once posted, the system automatically creates a PPTR - Prepayment Transfer To Balance Sheet document, which transfers the balance from the applicable expense nominal and account into the prepayment nominal on the balance sheet.
   

4. Based on the prepayment start and end dates previously entered, the system calculates the number of accounting periods within the time frame, together with the amount that should be allocated to each accounting period. A PPRL - Prepayment Release From Balance Sheet document is then posted for each applicable accounting period.