Writing Off Prepayments

This FAQ will cover how to write off prepayments in Paradigm.

If an order total is changed after the prepayment is received, there can be a balance owed to a prepayment without any open invoices to that customer. To write these prepayments off, a process similar to writing off bad debt will be used.

• Learn more about paying prepayment balances back to the customer here: Return a Customer Credit Balance

Create A Journal Entry

• Create a journal entry for the total write-off amount.
  • Write it off against the desired GL account.

• Create a receivable applying the prepayment to the journal entry.