Prepayments refer to the practice of paying for goods or services in advance before they are delivered or consumed. For sales this is referred to as Prepaid income.

Prepaid income also known as unearned income, refers to income or sales for which goods or services have not yet been provided to the customer, but payment has been received in advance. The advance payment is recorded as a liability on the balance sheet because the company owes the customer the goods or services. As the products are delivered or services are rendered, the liability decreases, and the corresponding revenue is recognized on the income statement.

For instance, if a magazine publisher receives payment for an annual subscription, they record it as unearned revenue initially and recognize a portion of it each month as they deliver the magazines.

On Tyms, all prepaid income is listed on the sales table, alongside other sales - receipts, invoices, and quotes.

To view only invoices amongst the other sales, filter by type, and select "prepaid income".

Here is a brief guide on how to record a prepaid income on Tyms: 

Steps to Create a Prepaid Income

Step 1: How to create a Prepaid Income

1. Navigate to the Revenue Module from the module list in the top left corner of your screen.
2. Here, you’ll see the sales table and related options.
3. Click "New Button" and select “Prepaid Income” from the options.
4. Enter the basic details:
   • Title: Enter a title for the prepaid income.
   • Currency: Select the currency from the dropdown list.
   • Customer: Choose the customer from your pre-added customer list.
   • Date: Input the date for the prepared income.
   • Due Date: Enter the due date for the prepaid income.
   • Spreading Period: Select the number of months over which the prepaid income will be spread.
   • Revenue Account: Select the appropriate revenue account from the dropdown list.
   • Prepaid Account: Choose the prepaid account as unearned income from the dropdown list.

Step 2: Add the items and relevant details

1. Click the “Add New Item” to select the item from your inventory.
2. Enter additional details like quantity and rate.
3. You can further customize your quote with the following optional fields:
   • Memo: Add any relevant notes.
   • Branch: Specify the branch if multiple branches are added to your system.
   • Department: Choose the applicable department.
   • Project: Link the prepaid income to a project if needed.
   • Tax: Select a tax from your system.
   • Discount: Enter a discount, either as a percentage (%) or a fixed amount.
   • Shipping Fee: Specify any applicable shipping costs.
   • Attachment: Upload related files or documents.

Step 3: Additional Details (Optional)

1. If the prepaid income has any discounts, taxes, or shipping fees for the overall item, you can add it:
   • Discount: Choose a percentage (%) or a fixed amount.
   • Tax: Select a tax from your system.
   • Shipping Fee: Input the shipping cost, if applicable.
2. If a deposit has been made, input the amount in the Deposit field.
   • Pay Through (Required): Select the payment method (e.g., cash, or bank) used for the deposit.
3. The system will automatically calculate the balance due (Note: the total balance due will be displayed on the table overview of the prepaid income).
4. To add shipping information, check the box for Enable Shipping Information and enter:
   • Shipping Name
   • Shipping Email
   • Shipping Phone Number
   • Shipping Address

Step 5: Saving the Prepaid Income

Once all details are entered:

• Save as Draft: Allows further edits later.
• Save as Published: Finalizes the record.
  • If there’s a balance due, the status will automatically change to Unpaid.
  • If there’s a balance due, but a partial deposit has been made, the status will automatically change to Partially Paid.
  • If there’s no balance due, the status will automatically change to Paid.
• After confirmation, the prepaid income details will be displayed on the sales table

Managing Prepaid Income with Individual and Bulk Actions

In the Actions column of the overview table, each entry has a menu (three dots) that allows individual actions and checkboxes for bulk actions.

Individual Actions (3-Dot Menu):

1. Preview: View the prepaid income to view a summary of the details.
2. Edit: Make changes to the prepaid income.
3. Manage payment: Record or manage payments associated with the prepaid income.
4. Duplicate: Create a copy of the prepaid income.
   • If the status of the original prepaid income is Paid, Unpaid, or Partially Paid the duplicate will have a Draft status allowing you to edit and save it as needed.
5. Delete: Remove the prepaid if it’s no longer needed.

Bulk Publish Draft Prepaid Income:

1. Select the checkboxes for each prepaid income in Draft status.
2. Once selected, the Publish button will appear.
3. Click "Publish" to update all selected prepaid income to Published status.

Bulk Delete Prepaid Income:

1. You can bulk delete prepaid income in either Draft or Published status.
2. Select the checkboxes for the prepaid income you want to delete.
3. The "red trash bin delete icon" will appear; click it to delete all selected invoices.

Bulk Export prepaid income to Excel:

1. Use the checkboxes to select the prepaid income you wish to export.
2. Once the prepaid income is selected, click the "Export to Excel icon" that appears.
3. The selected prepaid income will be exported to an Excel file, and downloaded to your device.

Download a Prepaid Income on Tyms

To download a prepaid income, you have to preview it

1. Preview Options:
   • Locate the Preview option in the action column.
   • When previewing the prepaid income, you can:
     • Click the "Print icon" to print the invoice.
     • Click the "Download icon" to save it as a PDF.

Managing prepaid income payments on Tyms

Managing prepaid income payments on Tyms involves editing existing payment values and adding payments to a prepaid income.  A prepaid income status can be unpaid or partially paid. To update the status to Paid, manage the payment by recording it through the Manage Payment page.

To manually add payments to a prepaid income, follow these steps:

1. Go to the action column, click on the three-dotted button, and select “Manage Payment”.
2. Alternatively, preview the prepaid income and click the "Manage Payment" button located at the bottom-right corner of the screen.
3. Click on “Add Payment” and select the following information for each payment you want to add:
   • Date: The date this payment was made.
   • Account: This is the method of payment. Either cash or any of your bank accounts.
   • Amount: The amount of money paid. This MUST either be less than or equal to the amount on the prepaid income.
4. Click on “Save” and the payment status updates automatically based on the payment balance (e.g., Paid, Partially Paid, Unpaid).
5. You can always make edits to existing payment values on the prepaid income.