[SL] Handling prepayments

[Michael H. <mh...@it...>]

Hello everyone,

    Just a thought/question regarding prepayment of services.  At the  
moment when somebody prepays (or accidentally overpays) we make an AR  
entry for that client with the check number, date paid etc and then  
as the funds are applied to invoices we decrement the original AR  
entry accordingly until the overage is depleted and then delete the  
original entry all together.  This method does work but it is rather  
prone to human error.
    And then I had an epiphany - could we not simply create an actual  
separate AP account in the chart of accounts for each those clients?   
And then "pay" invoices out of the appropriate account?  Is anyone  
else doing this?  If so have there been any problems/pitfalls?  (Or  
is there some third method that would be better than either of these?)


Thanks!

Michael