Prepayments

If you want to use prepayments, you must contact Bauwise support: support@bauwise.com

If prepayments are not enabled for your business, the functionality described below will not be visible or usable in your environment.

The functioning of prepayments

The prepayment is entered in Bauwise, either manually or through the interface of the accounting program (depending on your company's settings and work process). It is important that the expense type is marked as Prepayment:

2. The prepayment is distributed to the project like a regular purchase invoice.

You can see the prepayment:

From the "Finance" module on the "All invoices" page:

From the "Finance" module on the "Prepayment" page, where only prepayments are visible:

In the project view, from the "Financial entries" section:

3. In the project budget, the prepayment balance is displayed as a separate column, and it does not affect the actuated costs (they arise only on the basis of purchase invoices).

4. The prepayment return works in two ways (depending on the settings of the company's interface):

4.1. linking to the purchase invoice in Bauwise (purchase invoice through the procedure in Bauwise);

4.2. linking with the purchase invoice through financial entries (making a return through financial entries) - i.e. the purchase invoice and prepayment are linked in accounting. The project manager can see how the accounting is linked, but cannot change it himself.

PS! Purchase invoice and prepayment are linked based on supplier, project ID and subcontract/job code.

5. If the prepayments have been completely returned, the balance in the advance payments column is €0.

PS! Prepayments do not affect project completion or reports.

For example.

The total cost of the subcontract is €5,850.

A prepayment of 50% or €2925 was made to the subcontractor.

Subcontractor payment application for 20% of the works, i.e. submits an invoice in the amount of €1170.

Prepayment return on this invoice is calculated proportionally, i.e. 20% of €2925 (total amount of prepayment) = €585

In accordance with the return of the prepayment, the balance of the prepayment in the budget also decreases:

It is possible to overwrite the proportional prepayment return manually by writing the desired amount in the "Prepayment return" box:

The proportional prepayment return calculation applies if the purchase invoice is related to the subcontract (the total cost of the contract is known). In the case of non-contractual works, the return is always calculated as 100% of the prepayment amount, which the user can change manually if necessary. This is because, in the case of non-contractual work, it is not known whether more than one supplier is involved (e.g. it may be a larger group of works that includes materials from 3 different suppliers, only one of which has been paid in advance.)