How to Apply AR (Accounts Receivable) Prepayment to an Invoice in Sage 100 ERP

The Sage 100 ERP is one important platform designed by the Sage family that provides useful functions to go beyond accounting and helps businesses boost revenue. The software provides functions related to accounting, distribution, manufacturing and other fields related to the industry. Not a surprise that Sage 100 ERP has been extremely popular among the business community of late. 

Many times, a scenario arises where we have to apply prepayment to an invoice in Sage 100 ERP. Many Sage users have informed that they were finding it difficult to apply prepayments to an invoice in Sage 100 ERP. In this blog, we are going to address this. We will discuss a step by step procedure to apply prepayments to an invoice.

Before moving into the procedure, let’s have a look at the basics .

What are Prepayments?

A prepayment is used to adjust accounts for payments made before receiving the benefit. Examples of prepayments include:

• Insurance premiums
• Rent paid in advance
• Legal retainer fees.

How to Create an AR (Accounts Receivable) Prepayment Entry in Sage 100 ERP?

Please follow the below mentioned steps-

• Open Sage 100 ERP
• Go to the Accounts Receivable section
• Click on the Main menu.
• Now choose the Cash Receipt Entry option
• The Cash Receipt Entry window will come up
• enter the Customer number with the check number 
• in the Amount Received field, enter the amount prepaid.
• Click on the Lines tab
• Enter a future Invoice Number 
• Click on a tab. 
• A prompt will ask you whether the concerned transaction is a prepayment.
• Click on Yes
•  Click on the Accept button in order to record the transaction.
• A Pre-payment entry will be created for a future invoice.

Procedure to Apply Prepayments to an Invoice in Sage 100 ERP

To apply AR Prepayment on Invoices, follow the below mentioned steps:

• Open Sage 100 ERP
• Go to the Accounts Receivable section
• Click on the Main menu.
• Now choose the Cash Receipt Entry option
• Click to open the A/R Cash Receipts Entry Batch screen.
• Enter the relevant details such as Comments, Batch number  and so on
• Click Accept

• The Cash Receipts Deposit screen will appear
• Here, enter relevant details such as Description, Deposit number, Bank Code, Deposit date, etc. leave the fields Credit Card Deposit Amount and Cash Deposit Amount 
• Click on Accept

• The Cash Receipt Entry screen will come up. 
• Here, type in the Customer Number and the Check Number. Leave the Amount Received field as 0.

• Now click on the Lines tab
• on the first line, choose to apply the existing prepayment 
• in the Amt Posted field, enter the amount to apply.
• In the second line, specify the invoice to which you need to apply the prepayment 
• in the Amt Posted field, enter the amount to be paid
• Click on the Accept button.

Please Note: Make sure that the  Posting Balance and Total Posted fields are zero. If not, then the following error message will appear.

In the discussion above, we have shown how to apply prepayments to an invoice in Sage 100 ERP. If you are still having any difficulties while performing these steps or if you have any queries, you may consult with some of the authorized Sage experts 1800 964 3096.

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