# How is the best practice to account for a prepayment when you don't have the invoice yet in AR.

Basically, you received a deposit on an item but it isn't invoiced yet!

##### Post Metadata
- Posted at: over 6 years ago
- Author title: Accounting at Great Harvest Bread Co.
- Net upvotes: 1


## Comments
### Comment 1

Depends -  have you performed the work or delivered the product and just haven't invoiced the customer?  Then I would book as unbilled AR.  If prepayment for future deliverables, then deferred revenue should be used.

##### Comment Metadata
- Posted at: over 6 years ago
- Author title: Financial Analyst at Sequential Technology International



### Comment 2

Depends -  have you performed the work or delivered the product and just haven't invoiced the customer?  Then I would book as unbilled AR.  If prepayment for future deliverables, then deferred revenue should be used.

##### Comment Metadata
- Posted at: over 6 years ago
- Author title: Financial Analyst at Sequential Technology International



### Comment 3

I would record it as a payment advance, if you already created a receipt batch for that day it will make it much easier.

##### Comment Metadata
- Posted at: over 6 years ago
- Author title: Senior Accountant at HomeServe USA




## Related Product
[Sage Intacct](https://www.g2.com/products/sage-intacct/reviews)

## Related Category
[Accounting](https://www.g2.com/categories/accounting)

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