Accounts Receivable - Designated Prepaids

Description 

When entering a Manual Cash Receipt, users have the option to be able to allocate funds to a single or multiple Designated Prepaid accounts. 

In order to successfully post a Cash Receipt, the Amount Left to Distribute and Total Remaining must have a $0.00 value. 

This article will go over how and when to use this feature. 

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What are Prepaid Credits and how do they work? 

Normally, a Prepaid Credit is created when an owner pays more than they owe.  The system recognizes that an overpayment is happening and automatically distributes the overpayment to the General Prepaid Charge Code (PP).

When charges are posted against the owner's account, any funds in the General Prepaid will be distributed (according to the Code Distribution Table) automatically.

 

When would I want to allocate funds to a Designated Prepaid account? 

When distributing a payment against Charge Codes, you can browse and select certain Prepaid Charge Codes (PP-XXX) to apply the payment against.  You are “designating” the credit so it will ONLY be applied against a future charge for that Charge Code when the Apply Prepaids function runs.

Designated Prepaids gives you full visibility and control over how owner Prepaid Credits are tracked and applied against future owner charges.  You will find it useful in many situations like, owners who prepay a Special Assessment so you can make sure that the Designated Prepaid Credit is only applied against the Special Assessment charges and nothing else.

 

Step By Step 

 

1. Under Reserved For, select the Prepaid Account in the drop-down menu to add to the cash receipt. 

2. Enter the Amount to distribute to that account. 

3. To add additional Prepaid accounts, click +Add, then repeat steps 1-3 until complete. 

 

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In order to successfully post a Cash Receipt, the Amount Left to Distribute and Total Remaining must have a $0.00 value. 

 

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