Apply a Prepayment to an Invoice in Xero

Learn how to offset a prepaid amount against a new sales invoice, so you and your customer know exactly what's owed.

[lquidfire]

Hello again!
Do I see correctly that the prepayment gets its own invoice number, and then when you raise a sales invoice, it creates a new invoice altogether? So this actually "consumes" two invoices total?

[lquidfire]

Question:

My bank feed started well after my reconciliation date, so I imported bank statements (several months...). I could not set it in such a way that it imported the payments as prepayments (I cannot seem to create such a bank rule). The payments were all allocated to the Revenue Received in Advance code.

How can I match these prepayments to invoices? Do I have to do some kind of transfer? Or a manual journal at the end of the month?

I am trying to enter this year's worth of financial data into Xero, since I only started using it recently, mid-year.

Thank you for your advice!

[syedakinza]

I am confused how did you get $8000, or it was automatic? in my demo company i get 2000 credit only?
can we reset the demo company bank reconciliation?

[onnbonna]

This is already cool, man but can you teach us more about how to enter unearned ( something like school payment) how can we enter it in Xero? example: My student paid 1000 dollars for the beginning for the term, so how can I enter it?

[elijahmwale]

This feels like a lie, tried it ( didn't work) unless you say i was doing the wrong thing