Add a prepayment

Enter a prepayment in your bank account as a type of spend money or receive money transaction. A prepayment shows in your bank account before you invoice your customer, or your supplier bills you.

Xero does not offer multi-currency for prepayments. You can only add prepayments in bank accounts that are in your base currency.

To add a prepayment in your bank account:

  1. In the Accounts menu, select Bank Accounts.

  2. Select the bank account and click Manage Account.

  3. Select Receive Money or Spend Money

  4. Next to Received as or Spent as, select Prepayment.

    Prepayment option in Recieved as menu

  5. Enter the transaction details.
  6. Click Save.