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  6. How is the best practice to account for a prepayment when you don't have the invoice yet in AR.
Mary M.
MM
Accounting at Great Harvest Bread Co.
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How is the best practice to account for a prepayment when you don't have the invoice yet in AR.

Basically, you received a deposit on an item but it isn't invoiced yet!
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Greg L.
GL
Financial Analyst at Sequential Technology International
0
Depends - have you performed the work or delivered the product and just haven't invoiced the customer? Then I would book as unbilled AR. If prepayment for future deliverables, then deferred revenue should be used.
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Greg L.
GL
Financial Analyst at Sequential Technology International
0
Depends - have you performed the work or delivered the product and just haven't invoiced the customer? Then I would book as unbilled AR. If prepayment for future deliverables, then deferred revenue should be used.
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Ryan B.
RB
Senior Accountant at HomeServe USA
0
I would record it as a payment advance, if you already created a receipt batch for that day it will make it much easier.
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