Using Advanced Prepayment Payment Option

Using Advanced Prepayment Payment Option

The Advanced Prepayment feature in ExConnect allows you to efficiently manage and report on customer prepayments by allocating them to a designated Prepayment Clearing Account. This ensures clear visibility of future payments collected from customers and seamless reconciliation within Xero.

How to Enable and Configure Advanced Prepayments

  1. Navigate to Payment Mappings
    Go to Setup > Payment Mappings in your ExConnect dashboard.

2.  Activate Prepayments
Toggle the switch to enable the Prepayments feature. Once activated, all available payment accounts will be displayed.


3. Configure Prepayment Accounts
Select the relevant payment accounts to be used for prepayments. Assign each prepayment type to the appropriate Prepayment Journal you have created in Xero. This setup ensures that any customer prepayments are automatically posted to your chosen Prepayment Clearing Account.
After the payment settings, Enable the move PrePayment to Payment Account. This will ensure when the orders are closed. The A journal will be created to move the payment from the PrePayment to the Payment Account Selected for Payment types. 
4. Enable Automatic Movement of Prepayments
In the payment settings, enable the option to "Move Prepayment to Payment Account." With this setting enabled, when a sales order is closed in Erply:

  • ExConnect will automatically create a journal entry in Xero.

  • The journal will transfer the amount from the Prepayment Clearing Account to the designated Payment Account for the specific payment type.

  • This ensures accurate allocation and reconciliation of funds once the order is fulfilled.

    Benefits of the Advanced Prepayment Feature

    • Maintain a clear audit trail of all customer prepayments.

    • Easily generate reports on outstanding and applied prepayments at any time.

    • Streamline your reconciliation process by automating the movement of funds between accounts in Xero.

    • Improve financial visibility and compliance by ensuring prepayments are tracked separately until orders are completed.

    Note: Ensure you have set up the necessary Prepayment Journals in Xero before configuring this feature in ExConnect.