Vendor Pre-Payments

A vendor pre-payment is how you handle deposits and advance payments — money you send to a vendor before goods arrive or a bill is issued. Posting it deducts the amount from your bank account and parks it as vendor credit in CifraHQ. When the vendor's bill eventually arrives, you apply that credit instead of paying again, so you're never double-paying.

How to create a Vendor Pre-Payment

1. Go to Purchasing > Pre-Payments.
2. Click the + Data Entry button and select New.
3. Select the Vendor.
4. Select the Financial Institution (bank account) the payment is going out from.
5. Enter the Amount and, optionally, a Bank Fee and Payment Method.
6. Set the Posting Date (defaults to today).
7. Add a Reference Number if you have one (e.g., a wire transfer reference from your bank).
8. Post the pre-payment — the bank balance is reduced and the vendor's credit balance is increased.

Field reference

• Financial Institution — the bank or account the advance is paid from. This also determines the currency; choose the account that matches the currency you're paying in.
• Amount — the advance amount; editable only before posting.
• Bank Fee — any processing fee charged by your bank for the transfer. Recorded separately so your Bank Reconciliation stays accurate.
• Payment Method — optional; e.g., Wire Transfer, Check, ACH. Useful for your payment register and bank matching.
• Reference Number — optional; enter your bank's reference for the wire or transfer so you can find this transaction in your bank statement.

Document lifecycle

What happens next

When you receive the vendor's bill and are ready to settle it using the advance:

1. Open the Vendor Bill.
2. Click Pay → Apply Credit.
3. CifraHQ creates a credit payment using the vendor's available credit balance — no additional bank transaction required.

Tips

• The pre-payment currency is determined by the selected financial institution. If you need to pay in a foreign currency, select the account denominated in that currency.
• You can see the vendor's current credit balance on the Vendor Pre-Payment detail page (shown as Credit under the vendor fields) before posting, so you know what's already on account.
• If the pre-payment is larger than the eventual bill, the remaining credit stays on the vendor's balance and rolls forward to future bills automatically.

Related: Bill Payments · Vendor Bills · Vendors · Bank Transactions · Audit Trail · Account Priming