I have a purchase order that we prepaid, creating and posting a prepayment invoice. This purchase order has an unapplied amount of the prepayment remaining. The same vendor, on their own initiative, applied a portion of that prepayment to a new invoice for a different purchase order. I cannot find a way to settle the new invoice against the existing prepayment balance. When I go into the vendor master and click on apply prepayments, the Apply Prepayment grid view is pre-filtered to show only the open invoice. The open prepayment balance isn't presented as an option and there doesn't seem to be any way to clear the filter.
Settle transactions doesn't present any option to settle against a prepayment invoice.
I could settle it with a journal entry, which would at least get the Prepayments GL account correct, but it wouldn't correct the balance on the original prepayment purchase order.
After some trial and error, I was finally able to resolve this. The caveat to doing it this way is that the original purchase order the prepayment was made against had to be Finalized in order to make the remaining prepayment available to other transactions for this vendor.
On the original prepaid purchase order, each line that was not going to be delivered needed to be Cancelled. This was accomplished by selecting the line, choosing Update Line>Deliver Remainder>Cancel Quantity.
I repeated that step for the additional lines that we would not be receiving. This updated the Purchase Order from Open Order to Invoiced.
I finalized the original Purchase Order. This popped up a notification that a prepayment balance remained and it could now be applied to other invoices belonging to this vendor.
I invoiced the different PO the vendor applied the prepayment to on their books and was able to Apply Prepayment during the invoicing process.
This isn't ideal, on the off chance that the original PO had still had unfulfilled lines that would be fulfilled. It's not uncommon for vendors to apply prepayments to the next invoice that comes along, whether it's for the originally prepaid PO or a different one. In this case, I was lucky in that the original PO was completed.
Hope this helps someone else.
Steve
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