Entering Invoices that Reference Prepayments

[kkmundhra]

Hi Folks
Please explain the above mentioned topic with process.

Thanks in advance
Karan

[hiszaki]

Hi Karan

I would like to know what you mean for the above topic, is how I enter an invoice which had a prepayment before or how I enter invoice as a prepayment.

I'm sorry about my misunderstanding but I just want to know.

Thanks
Hisham

[kkmundhra]

Hi Hisham

Please go through the following scenariao.

1 Made a prepayment of 100 USD to a supplier.
2.Purchased goods worth 1100 USD from the supplier.
3.Supplier sends an invoice of 1000 USD after adjusting the prepayment.

How do I record this transaction???

In PDF there is description but I am not able to understand the same.

The following is the extract from PDF.

????Entering Invoices that Reference Prepayments

You can enter supplier invoices where the invoice amount includes prepayments.
If you receive a supplier invoice, and the invoice amount has been reduced because of
prepayments that the supplier has received, you need to indicate that the invoice
amount includes one or more prepayments in one of two ways:

? Quick Invoices: When you enter the invoice in the Quick Invoices window, enable
the Prepayment on Invoice check box.

? Invoice Workbench: When you apply a prepayment to an invoice in the Invoice
Workbench, enable the Prepayment on Invoice check box in the Apply/Unapply
Prepayments window.

When you indicate that the invoice amount includes one or more prepayments, the
following conditions are true:

? After the prepayment application, the negative distributions have the Prepayment
on Invoice check box checked in the Distributions window.

? Distribution Total: The Distribution total includes the Prepayment distributions and
any associated tax distributions.

? Amount Paid: The amount paid on the invoice does not include the prepayments
that the supplier referenced on the invoice.

Because the Distribution Total includes prepayments, you need to ensure that you have
applied prepayments before you submit the invoice for Invoice Validation.

Important: Since the invoice amount includes prepayments, you should
not use Distributions Sets to create your invoice distributions when
using the Prepayment on Invoice feature.????

Please help in this regard.

Thanks
Karan

[AmanKhan]

Hi kkmundhra

In the above scenario, you will enter two invoices using invoice workbench.

1. Prepayment type invoice and then made payment in full
2. Standard invoice after validating , apply/unapply prepayment created in first step.

There is no difference in the entry of standard invoice and prepayment except in prepayment, the type of invoice will be prepayment and will get Prepayment account auto from supplier site.

Thanks,

Aman

[kkmundhra]

Hi Aman

You did not understand my requirement.

"You can enter supplier invoices where the invoice amount includes prepayments.
If you receive a supplier invoice, and the invoice amount has been reduced because of
prepayments that the supplier has received, you need to indicate that the invoice
amount includes one or more prepayments"

Prepayment-100 USD
Purchase-1100 USD
Invoice Recd - 1000 USD (After adjusting the prepayment)

How do we record this??

Please go through the extract also in my previous post.

Thanks

Karan

[hiszaki]

Hi Karan

Now you record the Prepayment-100 USD for this supplier ok, then you enter an standard invoice with the total of purchasing 1100 USD then you made the match function with the purchase order no.

After you approve the standard invoice, go to action button then choose apply / un-apply the prepayment, it will open a form display all prepayment invoices for this customer with the same currency.

Check apply the prepayment with the GL date & amount (in case you want to discount some amount form the prepayment not all amount) then click apply.

This will reduce the amount of invoice to be = 1000 USD & you can pay this amount.

Hope I can help you

Thanks
Hisham

[Murthyoracle]

Hi Karan.

This is your scenario,
"
Prepayment-100 USD
Purchase-1100 USD
Invoice Recd - 1000 USD (After adjusting the prepayment)

How do we record this??"

I think you know the process of prepayment and adjustment. However i will start from 1st step.

1st you will raise prepapyment for an amount of Rs. 100USD and it will be paid.

2nd you will raise , Std. invoice for 1100/- and validate and next go to apply / unapply button apply prepayment amount of Rs. 100/-.

Now you querry how the 100/- of Prepayment will show?

In Standard Invoice of Rs. 1100/-, in Distribution lines shows as an amount of Rs. 1100/- and the applied amount of Rs. 100/- will shows as Negitive line. The Net balance you have to pay only 1000/-.

From here the normal procedure to pay an amount of Rs. 1000/-.

I think you will understand. Correct if i am wrong.

Regards,