Apply prepayment credit to existing invoice or bill
Here's how to apply an prepayment to an existing invoice or bill.
- Go to Accounts, then Sales (if prepayment received) or Purchases (if prepayment paid).
On the Awaiting Payment tab, click the prepayment .
- Click Prepayment Options and select Allocate Credit.
Xero displays all unpaid invoices or bills for this contact. Enter the amount to credit to each invoice or bill.
You can allocate less than the full amount of the prepayment, for example if the prepayment is more than the amount of unpaid invoices or bills.
- Click Allocate Credit.