Prepayment Invoicing

Set up and post prepayment invoices and apply them to final invoices.

Prepayments are payments that are invoiced and posted against a sales or purchase invoices/orders before final invoicing. You might require a deposit before you deliver the goods or payment before confirming an En Primeur sale. The prepayments functionality enables you to invoice and collect monies required from customers or to remit deposits to vendors.

Prepayment requirements can be defined for a customer or vendor for all items or selected items. After you complete the required setup, you can generate prepayment invoices from sales and purchase orders for the calculated prepayment amount. You can change the amounts on the invoice as needed. For example, you can specify a total amount for the entire order or a percentage. You can also send additional prepayment invoices if, for example, additional items are added to the order. You can increase quantities or add new lines to an order after issuing a prepayment, and then you can post another prepayment invoice. If you want to delete a line for which a prepayment has already been invoiced, you must issue a prepayment credit memo before you can delete the line.

For more information from Microsoft click here: Invoice Prepayments

Prerequisites

Set up sales/purchase order processing.

Process

The process below is for creating prepayment invoices from a Sales Order.

1

Customers

The Payments fasttab of the customer card lets you set the default Prepayment % that will apply to all orders created for that customer.

2

Sales Orders

Fields on the Prepayment fasttab are populated once the Sell-to Customer has been selected. These determine how any Prepayment Invoice is created, specifically you may want to change these fields: Prepmt. Payment Terms Code, and Prepayment Due Date.

The Compress Prepayment flag is set by default to No. This means that order lines will be copied to the Prepayment Invoice individually rather than creating one for the entire value.

Once the order is ready you can post the Prepayment Invoice. On the order ribbon, select Actions, Posting, Prepayment, Post Prepayment Invoice. This creates a Posted Sales Invoice and Customer Ledger Entry and sets the order status to Pending Prepayment.

If you amend the Prepayment % on the order after lines have been added, you will be asked if you want to update the lines, the normal reply is yes, as it's the details on the lines that determine any Prepayment Invoice values.

3

Viewing Prepayment documents from a Posted Sales Invoice

The Posted Prepayment Sales Invoice holds a link to the sales order it was created from. Fields on the page let you easily search for and open the sales order.

• Posted Sales Invoice List. This list has a field called Prepayment Order No. number (hidden by default). If you add it to the list you can click on it and it will open the Sales Order.
• Posted Sales Invoice. This page has a field called Prepayment Order No. number in the Invoice Details fasttab section. Clicking on it will open the Sales Order.
• Posted Sales Invoice lines. A number of prepayment related fields can be added to the Lines section of the Posted Sales Invoice to make it easier to identify what the lines relate to: Prepayment Item No. Original Quantity, Original Unit of Measure, Original Unit Price, Original Line Disc. Amount, Original Line Discount %.

4

Viewing Prepayment documents from a Sales Order

From the Order ribbon, click Related, Prepayment and select either Prepayment Invoices or Prepayment Credit Memos. From here you can navigate to all the related documents and see if their respective Customer Ledger Entry has been closed or not.

As a shortcut, Bevica provides a new field Prepayment Closed, visible on the Sales Order Prepayment fasttab and the Sales Order list. If the order has had prepayment documents created against it, No means that have not yet been paid, Yes means they have all been paid.

• The Order cannot be posted if the status is set to Pending Prepayment.
• Opening and Releasing the order retains the Pending Prepayment status.

If you want to reverse or cancel a Prepayment Invoice, from the order ribbon, select Actions, Posting, Prepayment, Post Prepayment Credit Memo.

5

Posting a Sales Order

To Ship or Invoice the order itself all Customer Ledger Entries for the Prepayment Invoices or Credit Memos must be Closed. This means that the prepayment invoice/credit memo customer ledger entries relating to the sales order need to be fully applied to another customer ledger entry, e.g. the customer ledger entry for the prepayment invoice should be fully applied to a payment customer ledger entry. Once this has happened, the order can be posted.

There is a setting which controls if users are able to post Sales Orders if there is an unpaid prepayment amount. If you would like to be able to post sales orders when there is an unpaid prepayment amount, untick the Check Prepmt when Posting field in Sales & Receivables Setup.

Prepayments and En Primeur

Prepayment can form part of the En Primeur process. See Paid Reserves for more details.

Prepayments and Reservations

Where you are using Reservations against Prepayment Orders to guarantee availability you may want to protect these reservations from accidental cancellation. To do this navigate to Bevica Setup and the Reservations fasttab. Set the Protected Prepayment Reservation flag to Yes. Users will be presented with an error message if they try to delete any reservation on a sales order line that has a Prepayment % applied.

Prepayment for Vendors

You can also set up prepayment against Vendors, if you have an agreement to prepay some or all of a purchase order. The process is largely the same as with a Customer and Sales Order above.