Vendor prepayment end to end in Microsoft Dynamics 365 Finance and Operations cross-apps (D365FO)

This process is to be used typically when vendor issues a prepayment invoice.

• Steps for prepayment invoicing cover:

• 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.

Setup requirement for PO based prepayment process includes:

Accounts payable parameters

Prepayment inventory posting for purchase

Procurement category node 

Report options for prepayments includes:

Vendor invoice entry – workspace – Open Prepayments

When prepayment is created

When prepayment invoice is posted