Rename 'prepayments' as 'payments on account'

Hi there,

Payments made to suppliers that are not attached to invoices are called ‘Prepayments’ in QF. This is confusing as the term ‘Prepayments’ is generally used to mean something else in accounting. For example, if you got an invoice for a year’s worth of insurance in advance, you would move the debit into the Prepayments balance sheet nominal account and then release it to the P&L over the following 12 months. If you said the word ‘Prepayments’ to most accountants they would think of these transactions and that nominal account.

A ‘Prepayment’ as QF defines it would sit in the Creditors Control Account, not in the Prepayments nominal.

Please consider renaming these transactions as ‘Payments on Account’ in line with standard terminology.

Run out of votes to add my agrrement to this suggestion, better to be the proper description.