Option 1: Post the Prepayment to a Liability Account
Most common method – post original prepayment to liability account, close the invoice following pre-pay reversal and receiving standard invoice payment
What to Do with Initial Prepayment:
Use the Confido "Pre-Pay" type, debiting Accounts Receivable and crediting a Customer Prepayment Liability Account (e.g., Customer Deposits or Customer Prepayments).
Make sure to add your Pre-Pay Liability account in your Confido settings first here —> “Select Prepay Liability Account”
Post the payment to the GL, where the prepayment will be handled via Journal Entry.
What to Do with Pre-Pay Reversal (if applicable):
For the pre-pay reversal, use the Confido "Pre-Pay Reversal" type to reverse the original entry (debit the Customer Prepayment Liability Account, credit Accounts Receivable).
For the standard invoice payment, use the Confido "Invoice" type, apply the payment to the invoice, and close it out.
If there is an associated shortage, post it using a standard deduction-type credit memo.
Option 2: Apply Pre-Payment to Invoice in ERP
Less common method – close out the invoice upon initial prepayment
What to Do with Initial Prepayment:
Use the "Invoice" type in Confido when recording the prepayment (not the "Pre-Pay" type).
Enter the discount amount in the Discount Amount field (this is the total invoice amount minus the amount paid).
Push the payment to GL, which
Applies the payment to the invoice, closing the Invoice
Captures the Early Pay Discount via credit memo
What to Do with Pre-Pay Reversal on the next payment:
UNFI will then send a pre-pay reversal followed by a standard invoice payment (invoice total minus discount). These two lines typically net to $0.
If the reversal and invoice payment net to $0, we recommend deleting both lines in Confido, as the payment has already been applied to the invoice and it is closed in the ERP.
If there is a shortage associated with the pre-pay reversal, post the shortage as a general deduction via credit memo.