In Nimble AMS, you can receive prepayments from constituents to later apply to orders. In addition, pending refunds on orders may be applied to a prepayment payables GL account as a credit refund, which allows you to apply a refund from one order to another. The prepayments and credit refunds are recorded against a prepayment payable GL account that you set up.
Staff can create prepayments received from constituents and later apply the prepayments to orders.
Paying with a Prepayment
When you create a prepayment, the following occurs:
- A new payment record is created with the
Available Credit Balanceequal to the amount of the prepayment and with the
- Two new transactions are created—one liability transaction for the prepayment payable and one payment transaction for the payment received.
Credit Balanceon the constituent's account is increased by the amount of the prepayment. The
Credit Balanceis the total available prepayments for an account. The
Credit Balanceincreases when prepayments are entered and decreases when prepayments are applied to orders or are refunded.
Refunding a Prepayment
When you apply a prepayment to an order, the following occurs:
- A new payment line record is created and linked to the prepayment's payment record.
Available Credit Balanceon the payment is reduced by the amount applied to the order.
- New transactions are created. The debit side is a liability transaction reducing the prepayment payable. The credit side is a combination of transactions to reduce accounts receivable if the order was previously submitted and is now being paid; or one or more transactions crediting the revenue for the products purchased on the order.
Credit Balanceon the constituent's account is decreased by the amount applied to the order.
Learn more about paying with a prepayment on the Payment Step of the Staff View order process.
Refunding a Prepayment
Constituents who have provided prepayments may later request that the prepayments be refunded. To refund a prepayment, in part or in the full, staff can enter a refund from the Prepayment tab.
To preserve the financial audit trail, prepayments cannot be edited or deleted once entered. Instead, staff enters a refund from the Prepayment page to reverse the prepayment fully or partially, as needed. Also, once a prepayment has been fully applied, it can no longer be refunded.
Staff may enter prepayments for your default entityonly. However, prepayments can be used fororders that contain products from another entity and the necessary inter-entity transactions are automatically generated. The requirements for this multi-entity support are:
- You must first set up an entity crossover between your default entity and the secondary entity.
- The order is entered using a batch from your default entity and contains a product from the secondary entity. Learn more.
Your association may wish to avoid processing refunds or may offer constituents the ability to keep pending refunds "held on account" for future orders as a convenience. By using credit refunds, staff can transfer a pending refund from the accounts receivable GL account to the prepayment payable GL account. The credit refunds can then be applied later to open orders.
Your credit refunds are tracked the same way as prepayments—a payment record will be created that has an
Available Credit Balance and
Is Credit is selected. The constituent's
Credit Balance on their account also increases to reflect the credit refund.
Learn more about issuing a credit refund on the Payment Step of the Staff View order process.
How Do I Enable It?
Administrators can set up prepayments and credit refunds in Community Hub and Staff View. Learn more about Payment Setup.
Things to Keep in Mind
- Your prepaymentscan only be entered for your default entity.
- Prepayments in the form of cash or checks are currently supported. Prepayments from credit cards are not supported.
- A constituent's prepayments and credit refundscan only be applied to orders for that constituent. They cannot be used to pay the orders for another account.
- Prepayment is supported in Staff View, and not in Community Hub. Constituents cannot enter prepayments in Community Hub or use their available
Credit Balanceto pay orders they enter using Community Hub. However, administrators can configure Community Hub to display prepayment-related information for read-only viewing, such as an account's