Create Prepayment Invoices

If you require your customers to submit payment before you ship an order to them, you can use the prepayment functionality. The same applies if your supplier requires you to submit payment before they ship an order to you.

You can start the prepayment process when you create a sales or purchase order. If you have a default prepayment percentage for a given item on the order, or for the customer or supplier, that will be included automatically in the resulting prepayment invoice. You can also specify a prepayment percentage to the entire document.

After you create a sales or purchase order, you can create a prepayment invoice. You can use the default percentages for each sales or purchase line, or you can adjust the amount as necessary. For example, you can specify a total amount for the entire order.

The following procedure describes how to invoice a prepayment for a sales order. The steps are similar for purchase orders.

To create a prepayment invoice

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Sales Orders, and then choose the related link.

  2. Create a new sales order for the relevant customer. For more information, see Sell Products.

    On the Prepayment FastTab, the Prepayment % field specifies the percentage to use to calculate the prepayment amount. If there is a default prepayment percentage on the customer card, the field is filled in automatically. You can change the percentage.

    Choose the Compress Prepayment field if you want to create lines on the prepayment invoice that combine lines from the sales order if:

    • They have the same general ledger account for prepayments as determined by the general posting setup.
    • They have the same dimensions.

    If you want to specify a prepayment invoice with one line for each sales order line that has a prepayment percentage, then do not choose the Compress Prepayment field.

    The due date for the prepayment is calculated automatically based on the value of the Prepmt. Payment Terms Code.

  3. Fill in the sales lines.

    If you have specified a default prepayment percentage either for the customer or on the Prepayment FastTab on this document, this value is copied to each line. You can change the contents of the Prepayment % field on the line.

    Tip

    If you do not see the Prepayment % field, you can add it through personalisation. For more information, see Personalise Your Workspace.

  4. To view the total prepayment amount, choose the Statistics action.

    If you want to adjust the total prepayment amount for the order, you can change the contents of the Prepayment Amount field on the Sales Order Statistics page.

    If the Prices Including GST field is selected, the Prepayment Amount Incl. GST field is editable.

    If you change the contents of the Prepayment Amount field, the amount will be distributed proportionately between all lines, except those that have 0 in the Prepayment % field.

  5. To print a test report before posting the prepayment invoice, choose the Prepayment action, and then choose the Prepayment Test Report action.

  6. To post the prepayment invoice, choose the Prepayment action, and then choose the Post Prepayment Invoice action.

    To post and print the prepayment invoice, choose the Post and Print Prepmt. Invoice action.

You can issue additional prepayment invoices for the order. To do this, increase the prepayment amount on one or more lines, adjust the document date if necessary, and post the prepayment invoice. A new invoice will be created for the difference between the prepayment amounts invoiced so far and the new prepayment amount.

Note

If you are located in North America, you cannot change the prepayment percentage after the prepayment invoice has been posted. This is prevented in the North American version of Business Central because the calculation of US sales tax will otherwise be incorrect.

When you are ready to post the rest of the invoice, post it as you would post any invoice, and the prepayment amount will automatically be deducted from the amount due.

See also

Invoicing Prepayments
Walkthrough: Setting Up and Invoicing Sales Prepayments
Finance
Work with Business Central
Personalise Your Workspace