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This content was produced by D365UG FO member, Rahul Mohta, Partner in Real Dynamics. Rahul has more than 15 years of expertise in ERP consulting, implementation, and pre-sales in Microsoft Dynamics 365 Finance & Operations
Modern, connected businesses need different ways of securing their supply chain. Sometimes businesses need to pay their vendors in advance before utilizing their services/goods. That’s why it’s important to track these prepayments throughout the lifecycle. This tip sheet lays out the process typically used when a vendor issues a prepayment invoice.
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
Steps for prepayment invoicing cover:
1. Capture prepayment details on the PO on the purchase tab in ribbon
2. Raise a Prepayment invoice
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
a. Liability is in prepayment account and not in AP summary account in GL b. Vendor balance reflects the prepayment and seen in vendor transactions
3. Create a REGULAR vendor payment journal settling the prepayment invoice
4. Raise final invoice after receiving from vendor and USING actions: apply prepayment in the invoice posting time
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
5. Show the final vendor invoice due amount is reduced by the prepayment amount.
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
Setup requirement for PO based prepayment process includes:
1. Accounts payable parameters
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
2. Prepayment inventory posting for purchase 3. Procurement category node
Report options for prepayments includes: 1. Vendor invoice entry – workspace – Open Prepayments
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
2. When prepayment is created
3. When prepayment invoice is posted
Vendor prepayment end to end in Dynamics 365 Finance & Operations cross-apps
Setting up prepayments, executing it and maintaining it end to end can be challenging. With this tip sheet, I hope this entire process becomes more manageable for you and helps in improving productivity of your whole AP Accounts Payable team. If you’re interested in writing for the user group community, submit your volunteer profile to get started.
To view additional educational content visit: www.axug.com
