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.
Prepayments should not be processed in the same way as Overpayments. Read more about overpayments at What are Overpayments in Xero.