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Make payments in advance with prepayment sales invoices

Important

Some of the functionality described in this release plan has not been released. Delivery timelines may change and projected functionality may not be released (see Microsoft policy). Learn more: What's new and planned

Enabled for Public preview General availability
Users by admins, makers, or analysts Feb 28, 2025 Jun 2025

Business value

The prepayment sales invoice feature streamlines the invoicing process for customers who make prepayments (advance payments). It helps businesses manage their cash flow more effectively by accurately recording and tracking prepayments. Overall, the prepayment sales invoice optimizes financial operations, increases efficiency, reduces risk, and contributes to the success of the business.

Feature details

The prepayment invoice feature gives you the option to issue an invoice for prepayment sales order lines. You collect payment with a prepayment invoice before delivering the goods or services. You reconcile and settle the prepayment invoice with the final invoice. This process ensures that all payments are posted against an invoice.

Additional resources

Prepayment invoices vs. prepayments (docs)