Prepayments/Partial Payments on Service Orders

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Posted on by MR-24110858-0

Hi everyone,

I’m looking for some guidance on handling partial payments / prepayments for Service Orders in Microsoft Dynamics NAV / Business Central.

From what I understand, the standard prepayment functionality isn’t available on Service Orders, and I’ve seen suggestions in the community about using a Sales Order as a workaround and then linking it back to the Service Order.

Could anyone share an example of how you’ve implemented this in practice?
Specifically:

How do you manage situations where parts or labour need to be prepaid before work starts?
How do you structure and link the Sales Order to the Service Order in your process?
Any tips or best practices to make this workflow smooth for finance and service teams?

Any guidance, examples, or process descriptions would be greatly appreciated.

Thank you!

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Microsoft Dynamics NAV

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Jainam M. Kothari 15,106 Super User 2025 Season 2 on at

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Prepayments/Partial Payments on Service Orders

Hello,

Since prepayment functionality isn’t available on Service Orders in Business Central, the common workaround is to create a linked Sales Order for the deposit, using its built-in prepayment features.

The process typically involves creating the Service Order for operational details, then generating a Sales Order with a line like “Prepayment for Service Order [No.]” and applying a prepayment percentage or amount.

Finance posts the prepayment invoice and receives payment before work starts, while the Service Order remains the execution document.

At completion, the Service Invoice is posted and the prepayment is applied against it.

Best practices include clear naming, maintaining a link between documents (via custom fields or reports), and optionally automating the creation of the Sales Order from the Service Order for smoother workflows.

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