Prepayments in Dynamics 365 Commerce

This article provides an overview of processing for prepayment transactions in Microsoft Dynamics 365 Commerce.

Dynamics 365 Commerce processes prepayment transactions for the following payment types that you use in Accounts receivable or Commerce:

• Customer account deposit payment – A customer pays a deposit at the point of sale (POS). Commerce processes the deposit payment as a prepayment transaction. When you post the transaction, a payment journal is created and posted on the Journal voucher page in Commerce headquarters. The Prepayment journal voucher checkbox on the Payment tab is automatically selected for the payment journal. For more information, including prepayment and tax-specific information that's relevant to the target region, see Globalization resources - Country/region specific help content.
• Customer order that has a deposit – A customer creates a customer order at the POS. The customer can pay a deposit for the order, based on the default deposit percentage that you configure on the Customer orders page in Commerce headquarters (Commerce parameters > Customer orders). Commerce processes the deposit payment for the customer order as a prepayment transaction. When you post the transaction, a payment journal is created and posted on the Journal voucher page. The Prepayment journal voucher checkbox on the Payment tab is automatically selected for the payment journal. The payment is settled, and the customer invoice is automatically issued when the order is picked up or delivered.
• Call center sales order - A call center customer service representative creates a sales order on behalf of a customer, and the prepayment attribute is set to Yes during the payment capture.

Commerce performs the following tasks to process a prepayment:

• Process a customer account deposit payment – A deposit payment that a customer makes is transferred to Commerce by using a service that synchronizes data. Commerce creates a retail payment transaction for the payment. When you post the retail transaction, a cash journal or customer payment journal is posted. The Prepayment journal voucher checkbox on the Payment tab of the Journal voucher page in Commerce headquarters is automatically selected for the payment journal. You can't process prepayments if the payment amount is negative.
• Process a customer order or sales order that has a deposit – A customer pays a required deposit for a customer order by using Commerce Data Exchange: Real-time Service. Commerce creates either a customer payment journal or a cash journal, depending on the method of payment that the customer uses. The Prepayment journal voucher checkbox on the Payment tab of the Journal voucher page is automatically selected for the journal in Commerce headquarters. If a customer uses multiple methods of payment to make partial payments, Commerce processes each partial payment, based on the method of payment that was used.

For credit cards, and for digital wallets that have underlying credit card payment methods, Commerce sends a "capture" request after successful authorization. (Funds are captured before the sales order is invoiced.)

If you cancel a customer order, the prepayment amount is refunded, and a refund payment journal is posted for the deposit amount. The refund amount is calculated and posted, based on the method of payment that you specified when you posted the refund payment. Commerce might apply a cancellation charge, based on the percentage that you set on the Commerce parameters page in Commerce headquarters.

If you return a customer order, a return order and a refund payment journal are created. When you post the return order, Commerce creates either a customer payment journal or a cash journal, depending on the method of payment that the customer used for the original transaction.