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AP: Prepayment Invoice

 

Prepayment Invoice             
* Giving the money to the supplier in Advance. Status of Prepayment Invoice Status         
Create Prepayment Invoice with 25,000 $. *After validation of prepayment invoice Unpaid         
Process Payment for Prepayment Invoice: 25,000 $. *When we create payment for prepayment invoice Available         
Create Standard Invoice : 10,000 $. *If you don't checked the check box called            
Apply Prepayment on Standard Invoice  Allow prepayment Application  Permanent Prepayment         
Two types of prepayment  If you check the check box called "Allow prepayment application" then it is "Temporary Prepayment".           
1. We can use that Advance to pay the invoices              
2. Supplier can keep it as security deposit. We cannot use this amount against invoices again we have to pay for the goods seperately             
Enable "Show available prepayments during invoice entry" in invoice options.             
*If you select the Invoice Type as "Prepayment" then system will select the payment terms which are in "Manage Invoice Options"             
*At the invoice line level system will take distribution combination from "Manage Common Options for Payables and Procurement".             
*If you check the checkbox called "Allow Prepayment application" then that is temporary prepayment             
Setups             
Invoice OptionsTaskManage Invoice Options>>In Invoice options in prepayment section we have to check the          
   checkbox "Show available prepayments during invoice entry".         
   >>Whenever we are creating prepayment invoice we have to          
    use "Immediate" payment terms.         
   >>After how many days we have to use the prepayment we can          
    mention the days in settlement days.         
              
Process             
Create Prepayment InvoicePathPayables >> Invoices >> Taskpane >> Create Invoice           
* At Invoice Header level if you check the checkbox called "Allow Prepayment application" then it is temporary prepayment.             
* At Invoice Header level if you uncheck the checkbox called "Allow Prepayment application" then it is permanent prepayment.             
* When you have validated the prepayment invoice the status of the invoice is unpaid.             
* After making the payment of prepayment invoice the status of the invoice is " Available".             
              
Prepayment Accounting Entries             
When we create Prepayment Invoice              
Prepaid ExpenseDebit            
LiabilityCredit            
When we make the Prepayment Invoice             
              
If you want to know the prepayment for which Invoices you have applied then you have to run this job in scheduled process             
To see the Prepayments which are             
applied to Invoices JobPrepayment Remittance Notice          

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