Prepay Invoices for Customers?

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I'm working with a client that has a frequent need for managing customer down payments for specific sales orders in AX (AR side). However, most end customers require some kind of document against which they would pay (an invoice for the deposit amount). I know that AX has pretty good capabilities on the Accounts Payable side to handle these deposit invoices (and automatically apply to the actual invoice once it comes), but is there something similar anyone is aware of on the Accounts Receivable side? I am aware of the prepayment application function against a sales order (which gets applied to the invoice when created from the SO). I'm looking for one step prior to that - something to send to the customer for them to issue a down payment against. Is there any way to generate an invoice for the deposit which would then be applied to the actual final invoice generated after the product is shipped?

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Ludwig Reinhard Microsoft Employee on at

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Hello EdSuda,

What I got is that you want to sent a customer a sheet of paper that tells him that he has to prepay a certain amount of money, right?

Do you know whether your country's tax rules require that you also make a prepayment for the sales tax that is included in the "prepayment invoice" that you sent out to your customer?

Ludwig

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Community Member on at

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Taxes do not need to be included on the prepayment invoice, since those will be covered in full with the actual final invoice. Also, the US locations do not have considerations like maintaining invoice number sequentiality, though the European locations will.

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Fredrik Sætre 12,644 on at

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The issue I see is that you are issuing an invoice for an item or service that will be an open customer transaction until it is paid. Ergo, you would need to reverse the transaction with a credit note immediately to get this to work, but then what do you match the inbound invoice against?

You would need to set a default invoice code to identify the payment to the one customer account. I believe that is possible. There are no document fot handling pre paid actual transactions, but would a proforma invoice be sufficient?

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Ludwig Reinhard Microsoft Employee on at

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Hi Edward,

I think the suggestion of Fredrik using a proforma invoice is good. In addition I also saw customers using dummy items and categories for that purpose. They actually posted the prepayment invoice on a transfer or bridging account. You need to discuss whether this is an option for you. A last thing that I would like to mention is the project module that has some very nice prepayment features available. If you already use sales orders in connection with projects this might be an excellent way for recording and tracking customer prepayments. If you don't use the project module then I wouldn't go for it only because of the prepayment issue as processes might need to be changed.

Hope it helps,

Ludwig

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3Dmerchant 295 on at

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I have an AX billing and collections module that can do this; please contact me to confirm it works the way you want.

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Kar_Gilson 410 on at

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How did you sort this out please Edward? I have a similar case.

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