Prepayments are generated when a unit overpays and establishes an account credit.
PayHOA assigns deposits from payments a revenue category based on which open invoices a payment was applied to. In the case of Prepayments, the unit in question had no open invoices, or the payment was greater than the total of the open invoices, and therefore the system cannot assign a revenue category.
During the period in which these credits cannot be assigned a revenue category, they are displayed on income reports as Prepayments. Once the units who have pre-paid use up that credit on an invoice, those credits will automatically be re-applied to the respective revenue category.
To learn what payments are making up Prepayments, you can pull the P&L Detail, which will tell you what date those Prepayments were deposited or you can pull the Prepayments by Unit report to see which units currently have a credit.
The P&L Detail report will only pull transactions that occurred during the selected time period, while the Prepayments report will pull all units that currently have an account credit, regardless of when that credit was established.