How to register and use prepayments in a subcontract
Written By Ekke
Last updated About 1 hour ago
Prepayments let you record advance payments made to a subcontractor and later offset them against future invoices. This is useful when part of the contract value is paid upfront, for example, as a negotiated down payment. Once registered, prepayments are tracked under the subcontract and automatically available to deduct from upcoming invoices.
How to register a prepayment
- Go to Subcontracts in the top menu.
- Open the subcontract where you want to add the prepayment.
- Scroll down and click Add prepayment.
- Fill out the requested information for the Prepayment invoice.
- Enter the net amount of the prepayment.
- Click submit
The prepayment is now registered against the subcontract. You can see it under the Prepayments tab of the subcontract, where the list shows the total prepayment amount and the remaining balance.
How prepayments are used
When processing a new invoice against the subcontract, you can choose to apply the prepayment.
- The available prepayment amount is shown in the invoice form.
- Enter the amount you want to offset (up to the available balance).
- The final invoice amount will be reduced by the applied prepayment.
This ensures that previously paid advances are tracked and deducted correctly across future subcontractor invoices.
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