Processing Prepayment Based Invoice

Explanation

This activity is used to handle, create and to remove a prepayment-based invoice which is part of the customer order flow. The prepayment-based invoice functionality is an alternative way of invoicing prepayments to the advance invoice functionality. It is typically used in Poland. It consists in first registering the prepayment and then, based on this, creating the prepayment invoice. If the prepayment-based invoice is created erroneously, it is possible to remove it from the system as long as it has not been printed and posted, in the same way as credit invoices can be removed while they are in status Preliminary. The activities are done in the following windows: Handle Prepayment Based Invoice, Create Prepayment Based Invoice and Customer Invoice.

Prerequisites

Defining required prepayment amount for a customer order:

• In the Method for Invoicing Prepayment field on the Company/Distribution/General tab, the Prepayment Based Invoice option must be selected.
• The customer order header must at least be in the Planned status but not in Partially Delivered, Delivered or Invoiced/Closed status.
• At least one order line or charge line must exist so that the order total is greater than zero.
• There should be no order lines or charge lines with multiple tax codes.
• Stage billing lines or sales contracts cannot exist for the customer order. Delivery confirmation may exist if the company is set up to allow delivery confirmation with prepayment invoicing.
• The invoice cannot be a collective invoice.

Creating prepayment-based invoice:

• The prepaid but not yet invoiced amount must be larger than zero.
• To connect prepayments to a customer order on the Connected Payments tab, the customer order must not be in Invoiced or Cancelled status and the amount required must be lesser than already connected prepayments.

Removing prepayment-based invoice:

• The invoice must exist in the Preliminary status.

System Effects

Defining required prepayment amount for a customer order:

• On the customer order confirmation, the required prepayment amount information will be printed.
• When the required amount is larger than zero and the customer order is released, if the paid amount is less than the required amount, then the order will get blocked. You can release the order in the Handle Blocked Customer Orders window.
• When a prepayment is connected to a customer order via the Connected Payments tab, the payment amount will increase.
• If the Prepayment Approved check box is selected in the Handle Prepayment Based Invoice window, then the required amount cannot be changed.

Creating prepayment-based invoice:

• A prepayment-based invoice is created in status Preliminary with the required number of lines.
• The invoice lines will not have a part number but just the description as entered when creating the invoice. E.g. PrePayment.
• One line per tax code found in the customer order line will be shown. If the tax code is changed the net amount is recalculated from the gross amount.
•  The amount shown on the invoice will be the difference between what the customer has paid and what has already been invoiced.
• The Advance/Prepay Invoice check box in the Customer Invoice window will get selected.
• A new record will be created in the customer order history.

Note: Customer tax withholding is not supported for prepayment-based invoice.

Removing prepayment-based invoice:

• The invoice will be removed completely from the system.
• The invoiced amount will be decreased.

Window

Handle Prepayment Based Invoice
Customer Invoice

Related Window Descriptions

Handle Prepayment Based Invoice
CO with Required Prepayments
Create Prepayment Based Invoice
Customer Invoice

Procedure

Defining required prepayment amount for a customer order:

1. Open the Handle Prepayment Based Invoice window.
2. On the header, in the Required Prepay Amt field, you can enter the amount required to be paid in advance. The percentage that this amount represents will be automatically calculated. Another option is to enter the percentage of the customer order gross amount (including charges), which is required to be paid in advance, in the Percentage field. Then the amount will be automatically calculated.
3. If the customer has agreed to the prepayment amount, then select the Prepayment Approved check box.
4. On the Connected Payments tab, you can connect any available prepayments which are not yet connected to a customer order.

Creating prepayment-based invoice:

1. Open the Handle Prepayment Based Invoice/Connected Prepayments tab.
2. Select the prepayment that has not been invoiced yet.
3. Right-click and select Create Invoice and the Create Prepayment Based Invoices dialog box will open.
4. On the Create Prepayment Based Invoices dialog box, you can edit the suggested lines, description, tax codes and amount. The amount can be edited only to be less than or equal to the amount shown.
5. Once satisfied, you can choose to just create, create and print, or create, print and off-set the invoice by selecting  Create and Create, Print and Off-set.
6. Once satisfied, you can choose to just create, or create, print and off-set the invoice by selecting Create and Create, Print and Off-set. If you select Create, the invoice will be in status Preliminary. If you choose Create, Print and Off-set, the invoice will be in status Paid Posted.

Removing prepayment-based invoice:

Once the invoice is created and in status Preliminary, if you need to do any changes to the tax code or the amount, you need to remove it and create a new one.

1. Open the Customer Invoice window and query for the required invoice.
2. Right-click on the header or on the General tab and select Remove Prepayment Based Invoice.
3. On the information message that appears, click OK.