Prepaid Inventory

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Posted on by JE-20081519-0

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Hi:

Is it possible to account for "prepaid inventory" in Business Central?

This would be for instances when you purchase from overseas, but the purchase is not landed cost.

Thanks!

John

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Dynamics 365 Business Central

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YUN ZHU 101,995 Super User 2026 Season 1 on at

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Hi, As far as I know, there are only Sales Prepayments Accounts and Purchase Prepayments Accounts, not Inventory Prepayments Accounts.

Inventory Posting Group only includes the following:

Hope this helps.

Thanks.

ZHU

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Khushbu Rajvi. 22,792 Super User 2026 Season 1 on at

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Please check standard Purchase Prepayment functionality.
Check if you can configure the prepayment account (as “Prepaid Inventory”) and post the prepayment invoice before receipt.

Set up prepayments - Business Central | Microsoft Learn

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OussamaSabbouh 17,586 Super User 2026 Season 1 on at

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Hello,

Yes, handle prepaid inventory with purchase prepayments.

Set up Purch. Prepayments Account in General Posting Setup, post a prepayment invoice, and the amount stays in assets until goods are received and invoiced, then it moves to inventory.

Regards,

Oussama Sabbouh

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AndrewThomas81 2,220 on at

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Hi John

I would avoid using prepayments, this will only create postings which affect the mapped prepayment account, it won't affect inventory.

I would raise a purchase order for the inventory and receipt it, providing you have Expected Cost Posting to G/L enabled in the inventory setup this will put the inventory into stock with the purchase order value (as expected cost).

If the inventory is not delivered yet, it would make sense to use a new location to recognise where the stock is physically located, and for potential insurance purposes.

If you have prepaid for the inventory I would then just post the cash to the vendor account, which can be applied to the purchase invoice when it is received.

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