What are Pre-Payments and how do I handle them?Wise-Pay pre-payments occur when we receive money from a client but do not have an invoice to match the payment.
When this happens, Wise-Pay will automatically create a prepayment in Xero for this amount against the nominated bank account.
The Wise-Pay Prepayment account is a Current Liability Account:
It will appear in your Bank Account Transactions as a Prepayment - Unreconciled:
And on the Dashboard against Wise-Pay Prepayments:
You will need to locate the client in Xero, and verify if the Invoice has now, subsequently been received for payment:
The Wise-Pay Prepayment account should balance to $0.00.
To ensure that a client's payments are applied appropriately, we should be aiming for the Prepayment account to return to $0.00 as quickly as possible.
The final step is to reconcile the payment in the bank statement.
When the IntegraPay Batch Payment is received to your bank account, it will generally be a total of both Prepayments and Wise-Pay Clearing transactions.
Select: "Find & Match" and search for PP_