Prepayment to vendors

 

 

Process

Create prepayment Purchase order

Create Purchase order

Create purchase order as usual by going to Procurement and sourcing -> Common -> All purchase orders -> Create new purchase order

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Add prepayment

On the purchase tab of the action pane on the purchase order, push the "Prepayment" button

Add the prepayment information and push "Save"

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Confirm the purchase order

Confirm the purchase order as usual.

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Invoice the prepayment

From the invoice tab of the action pane on the purchase order push the "Prepayment invoice"-button

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Enter Invoice number, description, invoice date and if required the due date.

Post the prepayment invoice

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Pay the prepayment

Create payment proposal and pay as usual by going to Accounts Payable -> Journals -> Payments -> Payment journal.

Create a new journal and enter main information

Push the "Lines"-button and enter the payment information

Push the "Functions"-button and select "Settlement"

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Push the "Functions"-button and select "Settlement" to open the "Settle open transactions"-form.

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Mark the relevant invoice to settle and close the form

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When returning to the journal voucher form, post the journal.

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When the final invoice arrives

When the final invoice arrives, we need to Invoice update the PO taking the prepayment into account.

Push the "invoice"-button on the Purchase order

Enter Invoice identification

Enter invoice date and verify due date

Push "Apply prepayment"-button

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Choose the relevant prepayments and push "apply prepayment"

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Push close and return to the invoice form and notice the prepayment line is now applied to the invoice.

Push "Post" to post the invoice

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Verify transactions

From Purchase order

Prepayment transactions

From the purchase order go to the invoice tab in the action pane and push the "Invoice journal"-button

In the "Invoice journal"- form mark the prepayment invoice and push the "Voucher"-button

In the "Voucher transactions"-form, verify the transactions.

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Final invoice transactions

From the purchase order go to the invoice tab in the action pane and push the "Invoice journal"-button

In the "Invoice journal"- form mark the final invoice and push the "Voucher"-button

In the "Voucher transactions"-form, verify the transactions.

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From vendor

From the vendor we see both the prepayment invoice, the payment and settlement of the prepayment and the invoice of the final invoice deduction the prepayment. Notice the final invoice is not payed and settled yet.

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Required setup

 Surprisingly little setup is required for the prepayment functionality to work.

Procurement category hierarchy

Procurement and sourcing -> Setup -> Categories -> Procurement hierarchies

A prepayment category must exist for posting setup

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Posting

Inventory management -> Setup -> Posting -> Posting

On the purchase order tab in the prepayment section posting must be setup for category = Pre-payment

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  by: Lise Holck, Senior AX consultant