D365 Business Central - Use of Field “Check Prepmt. when Posting” while working with Prepayments

Prepayments are payments that are invoiced and posted to a sales or purchase prepayment order before final invoicing. You may require a deposit before you manufacture items to order, or you may require payment before you ship items to a customer. You use the prepayments functionality in Business Central to invoice and collect deposits that are required from customers or remit deposits to vendors. Thus, you can make sure that all payments are posted against an invoice.

In case of prepayment orders, customer need to do payment in advance. Sometimes there is requirements to not allow shipment or Invoicing until customer has done the payment against the prepayment Invoices. Hence, In Business central we can restrict the posting of Prepayment Sales Order (Either Shipment or Invoice) if the customer has not paid the prepayment Invoice amount for associated Sales Orders.
 
We will discuss in below steps, how we can achieve this requirement in Business Central-

Step 1:  Open Business Central Web Client and Go to Sales & Receivable Setup. You can find field “Check Prepmt. When Posting” on Sales & Receivable Setup, set this field to TRUE. Please refer below screenshot-

Step 2:  Now create new Sales Order, Set Prepayment % to 100% and Set Prepmt. Include Tax to TRUE. I have created Sales order with Amount = 100, Tax = 8 and Amount Including Tax = 108.

Step 3:  Then Go to Posting Tab and Post the “Prepayment Invoice” –

Step 4: Once the Prepayment Invoice has been posted. You can verify the “Prepayment Invoice” amount by going into Related Tab and Click on Prepayment à Prepayment Invoices.

Step 5: Then again Go to the Original Sales Order and try to post the Sales Order. System will not allow you to post the Sales Order as this was the Prepayment Sales order and we have posted the Prepayment Invoice but still customer not received the payment from the customer.

This is useful where customer is using the prepayment module extensively. Also, it saves a lot of time for the users to verify the customer ledger entry before posting the Sales Orders.

Thanks & Regards,
Naveen Gour