Glossary
Prepayment
A prepayment is an amount paid before the goods or service is received, either all of it or part of it.
What it means for a shop owner
If you pay it to a supplier it is money he owes you in goods, and if you receive it from a customer it is something you owe until you deliver. Do not count it as revenue before delivery. Keep a clear receipt.
A worked example
A customer prepays 300 on an order of 1000. 700 remains at delivery, and the 300 is not yet profit.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes