Summary
This module focused on prepayments in Business Central. Prepayments are the payments that are made before the final invoicing of a sales or purchase order. Additionally, this module explained how to set up prepayments and how to post prepayment invoices for sales and purchase orders.
Prepayments can be used in sales or purchases. You can use prepayments to charge either a percentage of the total order or a specific amount before the items are shipped to customers. Companies can also use prepayments to record prepayments to vendors.
The Prepayments functionality in Business Central assists with the following tasks:
Invoicing and collecting prepayments that are required from customers or remitting deposits to vendors
Posting and tracking prepayment amounts to specific accounts
Accurately creating invoices that reflect the total order amount minus any prepayments
You can create several prepayment invoices for one order. Additionally, you can post prepayment credit memos, such as when an order is canceled.
An understanding of the prepayment functionality in Business Central will help you process prepayments in typical sales and purchase scenarios.