Applies to: Xero
If you would prefer to watch a video on how to handle your prepayments, watch the following Webinar:
Wise-Pay Best Practices - Prepayments
Wise-Pay pre-payments occur when we receive money from a client but do not have an invoice to match the payment. When this happens, Wise-Pay will automatically create a prepayment in Xero for this amount against the nominated bank account.
How are Prepayments posted in Xero?
The Wise-Pay Prepayment account is a Current Liability Account:
It will appear in your Bank Account Transactions as a Prepayment - Unreconciled:
And on the Dashboard against Wise-Pay Prepayments:
What do I do?
Here's how to do it:
- Select: "Find & Match" and search for PP_
Note: The total amount is not likely to equal the amount received from Payrix.
- Select the Prepayment Transaction
- Add a new transaction for the remaining amount as a direct payment
Note: Once this transaction has been saved, the total amount received should match with the transactions for prepayment and Wise-Pay Clearing - you should be able to complete the reconciliation.
- Complete the Reconciliation
The original Account Transaction will now be showing as reconciled.
Important:
Prepayments should not be processed in the same way as Overpayments. Read more about overpayments at What are Overpayments in Xero.