Prepayments are payments that are invoiced and posted to a sales or purchase order before you post the final invoice. For example, you might require a deposit before you manufacture items to order, or you might require payment before you ship items to a customer. You can use the prepayments capabilities to invoice and collect deposits from customers, and to remit deposits to vendors. This way, all relevant payments are posted against the same invoice.
For each customer or vendor, you can define prepayment requirements for all items or selected items. When you've set up prepayments, you can then generate prepayment invoices from sales and purchase orders with prepayment amounts that are based on your setup. You can change the amounts on the invoice as needed.
For example, you can specify a total amount for the entire order, or you can distribute the prepayment across each line on the order. 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 CR/adj note before you can delete the line.
The following table describes a sequence of tasks, with links to the topics that describe them.
|Set up prepayment posting groups and number series, and set up default prepayment percentages for customers, vendors, and items.||Set Up Prepayments|
|Create an order, adjust the prepayment amounts, and issue an invoice for prepayment amounts.||Create Prepayment Invoices|
|Issue an additional prepayment invoice, either for additional items or for an additional deposit on the original order, or issue a prepayment CR/adj note.||Correct Prepayments|
See related Microsoft training
Walkthrough: Setting Up and Invoicing Sales Prepayments
Work with Business Central
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