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.
- 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:
- Open the
Handle Prepayment Based Invoice
window.
- 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.
- If the customer has agreed to the prepayment
amount, then select the Prepayment Approved check box.
- On the
Connected Payments tab, you
can connect any available prepayments which are not yet connected to a
customer order.
Creating prepayment-based invoice:
- Open the Handle Prepayment Based Invoice/Connected Prepayments
tab.
- Select the prepayment that has not been invoiced
yet.
- Right-click and select Create Invoice
and the Create Prepayment Based Invoices
dialog box will open.
- 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.
- 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.
- 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.
- Open the
Customer Invoice window and
query for the required invoice.
- Right-click on the header or on the
General
tab and select Remove Prepayment Based Invoice.
- On the information message that appears, click
OK.