How to multiple prepayment in a PO

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Posted on by J_Lee

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Please advise how to issue multiple prepayment in a PO

Also, it strictly enforces a link between payments and a specific Purchase Order (PO) when settling payment

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Dynamics 365 Supply Chain Management

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Fasih 416 on at

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Hi,

Apply the prepayment in PO and generate Prepayment Invoice. Go to settle transactions for the vendor and apply Payment Schedule to the Prepayment Invoice for as many as multiples you want.

After all the instances of payment for the Prepayment Invoice are completed, go ahead and receive the product and issue final invoice.

This is the only workaround available.

Best Regards.

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J_Lee 1,266 on at

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May i have more information for apply payment schedule?

Also, how to link this prepayment is for this PO?

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Fasih 416 on at

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Hello,

Sure, here's how to do this.

First you have to create a prepayment from the Purchase Order page by clicking on Purchase Tab and then Prepayment in the prepay section

Select the terms for Prepayment, according to percentage or fixed amount as per your requirement

Then move to Invoice header and generate a Prepayment invoice.

After generating the invoice, go to Vendor payment journal, and settle transactions for that vendor. After marking your prepay invoice, click on Apply Payment Schedule

Then choose the prepayment installments and dates as per your requirements

Now post the journal entries on each of the installments until finished.

After completion of these installments posting and Receiving the product in your system, move to invoicing the original purchase order.

Go to the purchase order, Invoice Header. You’ll receive a warning message notifying you about the application of prepayment invoice.

Select Apply prepayment

After you apply the prepayment invoice, your invoice lines will show the exact standing of your invoices, displaying the prepayment deduction and the outstanding amount. Now you can post the full invoice.

This is how you can link Prepayments to a specific Purchase Order and divide the prepayment in multiple installments.
Hope this will clear all the ambiguities and you’ll get a solution.

Best Regards.

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J_Lee 1,266 on at

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Thank Fasih.

May i have further queries?

If the "apply payment schedule' is applied, how does the bank settlement happen?

for example, total prepayment is $100.

1st installment at 2-OCT = $50

2nd installment at 2-NOV = $50

In payment journal, will it be shown as below?

Date Descripition DR CR

2-OCT Vendor $50

Bank $50

2-Nov Vendor $50

Bank $50

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Fasih 416 on at

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Hi J Lee,

I am afraid we wont be able to see it like that, even if you post them in a single journal.

Regards.

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