Vendor prepayment options in Microsoft Dynamics 365 Finance and Operations one version D365FO

Vendor prepayment options in Microsoft Dynamics 365 Finance and Operations one version D365FO

• From PO, prepayment invoicing (use when your vendor issues an invoice)
  • Capture prepayment details on the PO on the purchase tab in ribbon
  • Raise a Prepayment invoice
    • Liability is in prepayment account and not in AP summary account in GL
    • Vendor balance reflects the prepayment and also seen in vendor transactions
  • Create a REGULAR vendor payment journal settling the prepayment invoice
  • Raise final invoice after receiving from vendor and USING actions: apply prepayment in the invoice posting time
  • Show the final vendor invoice due amount is reduced by the prepayment amount.

• Prepayments (non PO based) (when no invoice is raised)
  • No prepayment invoice
  • Liability on actual vendor balance