As the customer uses their pre-paid service, the pre-paid units and its liability need to be reduced. In addition to this, the income for the service which has been provided needs to be recorded. All this is done by recording another Item Invoice for a negative quantity of the pre-payment item, and a corresponding positive quantity for the income item. The following window shows a sample of the transaction. Image RemovedImage Added Referring to the above example: - The customer has used 2 of their pre-paid hours, so the balance of the pre-paid hours is reduced by selling -2 pre-payment items. This will also post a debit to the item's linked Liability account, reducing the company's liability to the customer.
- Selling a positive quantity of the income item (in this example Hourly Piano Lessons) will record the income for the service that has been provided to the customer.
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