Functions - ​Receiving and applying a deposit to a function invoice

Receiving a deposit

If you receive a deposit for a function from your customer, you can record this deposit as a prepayment in Xero.

You can record a prepayment in Xero using one of the following options:

(1) Add a prepayment to your bank account in Xero 

(2) Add a prepayment during bank reconciliation.

Please refer to the article Record a prepayment in Xero for details.

The customer will now have an outstanding credit from the recorded prepayments and you will be able to allocate this credit next time you approve an invoice in Xero for that customer.

Things to note

• Ensure that the contact used on the prepayment and the function invoice is the same.
  • If this is not the case, edit the prepayment or the function invoice to use the same contact.

Sample

• Function invoice was sent from DotGolf with an outstanding amount of $1,150.00
• Prepayments were recorded to DOTGOLF3 contact in Xero.

Use the steps below to apply a prepayment to a function invoice

1. Login to Xero.
2. Go to Business > Invoices.
3. Edit and review the invoice.
4. Click Approve.
5. Xero prompts you to allocate the outstanding credit. Click Allocate.

• Enter the amount to apply as credit on the invoice. Click Allocate Credit.

• Amount Due is now reduced to $650.00 after applying the prepayment amount of $500.00.