Microsoft Dynamics AX (Archived)

Prepayment Accounting entry

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Dear All,

While processing any Prepayments in AX 2012 R3, system creates below entries.

Prepayment invoice(system generated) Dr Prepaid Expenses A/c Cr Vendor A/c

While making payment to prepayment invoice Dr Vendor A/c Cr Cash/Bank Alc

If i'm taking the vendor statement as on date system will show the outstanding to vendor as zero since Dr and Cr knocked off. But reality is different, our sum amount is lying with vendor.

Please can suggest how the payable accountant know the amounts lying with vendor before releasing the payment? Is there any prepayment report?

Manually checking will not help.

Zuresh..

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Prashant Singh 8,802 on at

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Once you will make prepayment invoice system will make the following entry Dr. Prepayment $500 and Cr. Vendor Balance $500. Suppose the PO value is $1000 and you are making prepayment 50%. While making the payment for this prepayment Dr. Vendor $500 and Cr. Bank $ 500. And then apply this prepayment system will post the following entry Dr. Vendor balance $500 Cr. Prepayment and Dr. Inventory 1000 and Cr. Vendor Balance 1000 and Dr. Inventory. And some clearing entry. And you are liable to pay only remaining $500.

Once invoice and received and encoded payable accountant will know the amount. Or need to check manually by clicking on purchase order prepayment button. Or check the vendor statement report.

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Ludwig Reinhard Microsoft Employee on at

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Hello zuresh82,

If I get you right then you want to know how much money your vendors actually owe you because you paid them in advance.

From an accounting perspective the problem is that AX does not differentiate between prepayments requested by vendors and those actually made.

One possibility for you might be to always make use of a financial dimension "vendor" that would allow you breaking up the total amount sitting on the prepaid expenses account.

By opening the Trial Balance list page form for your ledger accounts and financial dimension "vendor" you should be able to get a breakdown of your prepaid expense account.

Hope it helps,

Ludwig

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Community Member on at

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Dear Mr Prashant,

Thanks for the very clear details and well understood..

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Community Member on at

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Dear Mr Ludwig,

You are absolutely correct and my requirement was same that you understood. I was using Oracle and there was a report call Prepayment status report for the same purpose. However I have done the same report through SQL queries linked to Prepayment table in AX. Thanks

Making separate dimension not appropriate for us since we are tracking all PO prepayments to separate ledger.

Zuresh

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ahmed.kimo 536 on at

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Dear Zuresh,

I was reading the same issue what you were facing and i have the same situation with my client , I wonder if you can share with me the report you built in SQL in order to check if it can sort out my requirement or not .

Best Regards,

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Gaurangkumar Jani 4,534 User Group Leader on at

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I'm also facing same issue, How can I get this advance balance in my Vendor Statement???

Thanks in advance.

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