How to: Set Up Vendor Prepayments

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Prepayments are advance payments on purchase orders that are paid before the final invoice is issued. For example, you may be required by a vendor to prepay 20 percent of the invoice amount on a manufactured item. Prepayments allow you track and record advance payments on purchase invoices.

To set up vendor prepayments

  1. In the Search box, enter Purchases & Payables Setup, and then choose the related link.

  2. On the Numbering FastTab, verify that the number series for the Posted Prepmt. Inv. Nos. is the same as the Posted Invoice Nos.. Also verify that the number series for Posted Prepmt. Cr. Memo Nos. is the same as the Posted Credit Memo Nos..

  3. On the Prepayment FastTab, enter the following information.

    Field Description

    Use Prepayment Account

    Select to post prepayments using the special subaccount specified in the Prepayment Account field in the Vendor Posting Groups window.

    Posted PD Doc. Nos.

    Enter the code of the number series that you want to use for prepayment documents.

    PD Doc. Nos. Type

    Select if you want to use a number series or symbol to identify prepayment documents.

    Symbol for PD Doc.

    Enter a symbol to be printed on prepayment documents.

    PD Gains Condition Dim Value

    Enter the code for the dimension that is used to generate conditional prepayment gains.

    PD Losses Condition Dim Value

    Enter the code for the dimension that is used to generate conditional prepayment losses.

    PD Gains Kind Dim Value

    Enter the code for the dimension that is used to generate payment in kind prepayment gains.

    PD Losses Kind Dim Value

    Enter the code for the dimension that is used to generate payment in kind prepayment losses.

  4. Open the Vendor Posting Groups window.

  5. In the Prepayment Account field, specify the general ledger accounts that you want to use for posting vendor prepayments.

  6. Choose Close to close the window and save your entries.

You can now track and record advance payments on purchase invoices.

See Also

Other Resources

Walkthrough: Setting Up and Invoicing Prepayments
Invoice Prepayments
Set Up Prepayments
How to: Correct Prepayments