---
title: "Customer Prepaid Invoicing"
canonical: "https://kb.myframeworks.com.au/space/FRAM/28390730/Customer%20Prepaid%20Invoicing"
format: markdown
---
# Overview

> Macro (excerpt)
> 
> The Customer Prepaid Invoice feature allows you to provide account customers with an invoice, for a sales order, to make a full or partial payment for their order before dispatching their items. You have the option to send out a prepayment invoice via a prepayment order. The prepayment order type is available when creating a new order within **Sales Orders**. 
> 
> > ⚠️ **NOTE**: Cash and COD customers are not permitted to have prepaid orders.


> **Use Case Example**:
> 
> One of your account customers wishes to place a large order, but you have a policy requiring payment before releasing the stock. Using **Customer Prepaid Invoicing**, you can generate an invoice for the customer, before any stock movements occur. The customer is expected to make the payment either in full or through scheduled payments over time. You retain control over when to release the stock, ensuring that it only occurs once the payment has been received.


> Macro (include)

## What occurs during the Prepayment Order process?

The main difference between the prepayment and standard order process is that during the prepayment order process, an invoice will be generated without stock movements occurring until the order is picked and released. Once the **Prepayment Order **is released and the invoice is generated, ready for payment, the sales order will be locked from adding more products and the order type will be updated to **Prepaid Order. **

During the standard order process, an invoice is generated at the same time as the stock movements occur at the end of the pick and release process. 

> ℹ️ Like all account sales, the stock can be released without payment being made. The same payment term rules apply to the account customer. The only differeance is the invoice isis generated before the stock movements occur.

![image](media://25fffb33-ee51-48ff-a6bd-0d4dd4f0e31c)

## The Prepay Order Process

1. Create the Prepayment Order via the standard new sales order process, selecting the **Prepayment Order** as the **Type.**
  1. Add the products and maintain the sales order as normal
2. To create the invoice and lock the sales order so no further adjustments can occur select **Release Prepayment Order** from the **Actions **menu.
  1. Your prepayment order has transitioned to a **Prepaid Order** that can be picked and released once you've received sufficient payment. The transaction number is given a** B/O** suffix of **1**.
  2. An invoice for the full amount of the order is created and the transaction number is given a** B/O** suffix of **99**.** **This is the transaction the customer payments will be made against.  
  
***Note:**** To print or send the customer a copy of the invoice you’ll need to navigate to the **** Invoices, Orders, Quotes, Projects & Jobs**** section within the ****Customer Dashboard.***
  3. No stock movements have occurred.
3. Once the customer has made the required payments, in full or partial, you can release the stock by selecting **Release Paypaid Order.** This will take you to the **Pick and Release** screen allowing you to handle the release of stock as per normal.

> ℹ️ **Note:** If less stock is released than the original order, a credit note for the difference will be applied to the customer’s account.


> Macro (excerpt)
> 
> # Customer Prepaid Invoicing GL Movements
> 
> |  | **DR (Debit)** | **CR (Credit)** |
> | --- | --- | --- |
> | **Release Prepayment Order** | - Debtors | - Unearned Income
> - GST Sales |
> | **Release Prepaid Order** | - COGS
> - Unearned Income | - Stock
> - Sales |
> | **Picking with no Backorder or Reduced B/O (Credit Note Produced)** | - Unearned Income (Value of Credit Note)
> - GST Sales (Value of Credit Note) | - Debtors (Value of Credit Note) |

# Additional Information** **

> ✅ Refer to [Customer Prepaid Invoicing - Setup and Configuration](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28389842) for more informaion.