If a customer prepays, their account should show a credit balance. This is basic accounting practice. If you create a credit note for a customer, this shows as a credit on their account, so what's the difference? All that needs to be done to fix this problem is instead of Xero creating an Invoice for a Prepayment, a Credit Note should be created instead. I would have thought this would be easy to fix and am surprised people have been asking for this change for nearly 2 years. In the meantime, there are a whole lot of businesses out there that have their Debtors ledger with incorrect balances.
Allison Jones
supported this idea
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If a customer prepays, their account should show a credit balance. This is basic accounting practice. If you create a credit note for a customer, this shows as a credit on their account, so what's the difference? All that needs to be done to fix this problem is instead of Xero creating an Invoice for a Prepayment, a Credit Note should be created instead. I would have thought this would be easy to fix and am surprised people have been asking for this change for nearly 2 years. In the meantime, there are a whole lot of businesses out there that have their Debtors ledger with incorrect balances.