There could be numerous types of prepaid transactions. But the most common types are prepaid sales and cancellations.

A sale or cancellation transaction includes a total amount that usually includes tax. In order to post to the general ledger, the prepaid transaction must result in a financial transaction. Moreover, separate GL entries must be created for the breakdown of revenue and tax. In some cases, it may also be necessary to calculate the usage from the revenue amount.

Calculated Adjustments are used to book revenue from these types of transactions. A base Generate Adjustment algorithm is available to let rate application generate the appropriate GL calculation lines and calculate the corresponding usage, if needed.

Prepaid adjustments do not affect a customer's balance.