Purchase Order Prepayments

Hi Folks,

Good Morning!

My today's blog post is regarding the Purchase order prepayment process in AX2012. The business user sometimes needs to maintain the prepayment to the vendors against the specific purchase order. There is the standard functionality available in AX2012 to track the purchase order prepayments. It's a very useful feature if you are creating purchase orders with vendor advances, we can also enable or configure the alerts once the purchase order is received and invoiced which will eventually help the Finance team to generate the payments and settle the vendor invoices against the purchase orders. 

Here I am listing the step by step process to configure the Purchase order prepayment process in AX2012R3

Step by Step

1. First of all, create the prepayment category in the procurement category hierarchy and map the posting profile for the prepayment.  
   
   
   
2. Path: Procurement and Sourcing> purchase order> all purchase order> select purchase order> purchase> prepay
3. Create the purchase order
4. Select the line item with item sales tax group and sales tax group in purchase order line
5. Select the prepay and enter the description for the prepayment(Percentage or value options are available) 
6. Save and confirm the purchase order
   
7. Generate the prepayment invoice
8. Enter the prepayment invoice number and invoice date
9. Post the prepayment invoice
   
10. Use the payment journal to approve/generate or book the prepayment(30%) against the prepayment invoice, posted against the purchase order 
    
11. The supply chain team will perform the following tasks
    1. Complete the product registration process
    2. Post the product receipt and system will generate the quality order.
    3. Process the quality orde
12. Now generate the invoice and make sure to apply the prepayment for the vendor invoice
    
13. The system will reverse the prepayment invoice posted for the purchase order
14. Finally, post the vendor payment journal to settle the vendor invoice against the purchase order
    
15. Once the vendor invoice against the purchase order is completely settled, check the vendor transactions in the closed transaction editing form
    
    If you have any question or feedback regarding the Purchase order prepayment process, feel free to share.  
    
    Cheers!