Apply Prepayment for Vendor /Supplier

If you would like to be paid before the invoice and want to see the reason of the payment, you can use prepayment functionality of the system.

The steps to use the prepayment functionality.

1. Create a PO.

2. Select the prepayment amount to be invoiced.

You may define by percent or fixed amount.

Consider the VAT amounts.

A category is needed for posting. In posting profiles, you have to assign an account under prepayment. You may not select more than one. 

3. Post the prepayment invoice

Prepayment invoice is seen on vendor transactions and will use the vendor account with the prepayment account that is defined for the procurement category.

4. Pay the prepayment invoice (Do not forget to settle or else, you may not be able to see the prepayment invoice when you issue the final invoice)

5. Post the final invoice: When you post the final invoice, you select the prepayment invoice. System will inform that the order has a prepayment invoice. System will reverse the GL postings of the prepayment and post the original. Vendor balance will not be reverse and vendor transactions will not be effected as balance.

Hint: You can only use prepayment functionality from the PO.

Note: There can be issues during the reversals. You can reverse a prepayment invoice but only the last one can be reversed. So you may not be able to reverse an invoice that has placed in the past. So before to apply this procedure for the client, be sure that all the processes are convinient for the client!

Note: Do not forget to document the VAT cases