Hello Community!

I wanted to spend a little time talking about a feature in Purchase Order Processing introduced back in Microsoft Dynamics GP 2013… Prepayments.

By the end of reading this blog, I hope you will understand the following:
 * What are prepayments and when would I use each type available with Microsoft Dynamics GP.
 * How to enable prepayments with Microsoft Dynamics GP.
 * How to create a manual payment type prepayment.
 * How to create a computer check type prepayment.
 * What invoicing looks like with each prepayment type.
 * What a prepayment looks like in the Payables Aged Trial Balance report.

Let's talk about what prepayments are and when you would use each type available with Microsoft Dynamics GP.
 
Prepayments allow you to prepay money on a purchase order. It is common to see a prepayment used when a vendor requires a down payment or to pay for shipping costs before receiving the items.

In Microsoft Dynamics GP, it is possible to create either a manual type payment or a computer check type prepayment.
A scenario of when a manual type payment may be when a company wants to provide a check outside the computer-generated checks or give a credit card to their vendor as prepayment.
A scenario of when a computer check type prepayment may be when the company wants to provide a computer-generated check to their vendor as prepayment.

The following is a PDF created that outlines enabling prepayments and issuing/receiving a purchase order with a Prepayment attached.

Microsoft Dynamics GP Purchase Order Processing Prepayments overview.

I hope that the information offered has proven helpful and you are more confident when working with Prepayments within Purchase Order Processing.

Until next time,
Nicole Fiskum | Support Engineer | Microsoft Dynamics