Prepayments and On Account Receipts - On Account Receipts

This page describes entering a deposit you have received from a Customer as an On Account Receipt. Please click here for details about entering a deposit as a Prepayment, and here for details about the configuration required to enter On Account Receipts.


An On Account Receipt is a Receipt that has no Invoice Number and no Prepayment Number. You can connect an On Account Receipt to a subsequent Invoice, but you cannot do so using the 'Connect to Prepayment' function. Instead, follow these steps:

  1. When you receive the deposit or other payment, you should record it in a new record in the Receipt register. In the row representing the On Account Receipt, specify the Customer and Received Value on flip A but do not enter an Invoice Number or a Prepayment Number on flip D. This example shows an On Account Receipt of 1000.00:

    If you are prompted to enter an Invoice Number or a Prepayment Number, the probable reasons are that you are using the Use Prepayments, not On Account option on the 'Debtors' card of the Account Usage S/L setting, or you have not ticked the On Account box in the Contact record for the Customer.

    If you need VAT to be posted from On Account Receipts and so have selected the Post Receipt VAT option in the Account Usage S/L setting, enter a VAT Code on flip E. The VAT Value will then be calculated from the Received Value.

  2. Enter the Invoice and mark it as OK as normal and without reference to the On Account Receipt.

  3. Now you can register that the Invoice has paid by the On Account Receipt. To do this, create another Payment with two rows as follows:

    Specify the Invoice Number on flip A in the first row as normal. Change the Received Value to the value being paid by the On Account Receipt, if this is less than the default (i.e. less than the total outstanding on the Invoice).

    On the second row, enter the Customer on flip A and, in the Received Value field, enter the value being paid by the On Account Receipt as a negative figure.

  4. After you mark the Receipt as OK and save it, reports including the Periodic Customer Statement illustrated below show that the On Account Receipt of 1,000.00 has been partially used up by the Invoice for 201.60:

You can use Access Groups to prevent certain users from saving Receipts in which there is at least one row with a negative Received Value, by denying them access to the 'Negative Amount on Receipt' Action. Note that if you deny a particular user access to this Action, you will also prevent that user from connecting Invoices to On Account Receipts as described above.


The Receipt register in Standard ERP:

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