You can see how a deposit payment will create a prepayment which can be applied against other fees.

1. Click on the ‘RIO Challenge v4’ tab at the bottom left of the page. Click on ‘Initiate Challenge’ to generate the data required for this challenge.
   
   
   
   
    
2. Go to the ‘Contacts’ tab, and select the list view ‘C06.12 - Prepayment Transaction’ to find the relevant record created for this challenge. 
   
   
   
    
    
3. Click on the ‘C06.12 - Fred Smith’ contact and navigate to the ‘Transactions’  tab (If not visible click on More > Transaction). Transaction tab shows the related transaction payment records. 
   
   
   
   
    
4. Click to open the first Transaction Order in the list which should have the Reference ‘C06.12 Order 1’.
   
   Notice that this Transaction Order (‘C06.12 Order 1’) has a Transaction Line Item for ‘Program Deposit’ at $1,000.
   
   In other words, Fred needs to pay this $1,000 deposit fee.
   
   
   Note:
   
   In reality, once a student makes a payment, RIO will automatically generate a Transaction Payment record.
   
   But, let's create one manually, so that we can see how this process works.
   
   
   
    
5. Return to the Contact record for ‘C06.12 - Fred Smith’, and navigate to the ‘Transactions’ tab.
   
   
   
   
   Create a new Transaction Payment record with the following details.
   Make sure correct amount is entered for the payment record.
   
   This record represents the payment that Fred Smith has made.
    

6. After creating the Transaction Payment record, you will notice that an extra record is automatically created as a ‘Prepayment’ Transaction Type.
   
   
   
   
   
   This prepayment can be applied against the upcoming tuition fee.
   
   In other words, if a student pays their deposit fee, it can be used to pay their tuition fee once they're enrolled into the program as a student.
   
   
    
7. Now its time to apply the prepayment to the subsequent fee, which is the tuition fee. 
   
   While still viewing the Contact record for ‘C06.12 - Fred Smith’, navigate to the ‘Transactions’ tab.
   
   
   
   
   
   Open the 2nd Transaction Order in the list with the Reference ‘C06.12 Order 2’.
   
   
   Notice that this Transaction Order (‘C06.12 Order 2’) has a Transaction Line Item for ‘Tuition Fee’ at $1,000.
   
   In other words, Fred needs to pay this $1,000 tuition fee.
   
    
    
8. However, recall earlier in step 5 and 6 that Fred has paid the deposit fee, and there is a prepayment worth $1,000.
   
   So, this prepayment can be applied here.
   
   
   Check the “Apply Payment” field on the Transaction Order as TRUE.
   
   
   
   
    
9. Then update the Transaction Order Status to “Confirmed”.
   Note that the “Total Outstanding Amount” is now $0.
   
   
   
   
   Additionally, a new Transaction Line Item which indicates payment for the Tuition Fee is generated.
   
   
   In other words, you have used Fred's $1,000 deposit (from step 6) to settle the tuition fee here. 
   
   
    
10. In conclusion, when a payment is made to a “Deposit” Transaction Line Item, a new prepayment is generated with the same amount.
    
    This gets automatically applied to any upcoming Transaction Line Item such as “Tuition” or “Residential” types. 
    
    
     
11. Congratulations, you have completed the challenge! Click on the 'RIO Challenge v4' tab at the bottom left of the page, and click on 'Complete Challenge'.