Specifying prepayments

A prepayment is a deposit or payment made to a vendor before an invoice is received. For example, some purchases may require a down payment before goods are even received or invoiced. This procedure describes the process for specifying prepayments.

Note: For information about matching prepayments, see the Invoice Matching User Guide.

Specify a prepayment invoice

Access Prepayment (AP20.6).
Specify or select applicable header information.
Specify or select required and optional information for the prepayment invoice on the Main tab.
Specify this information:

Vendor

Specify or select a valid vendor number for the prepayment invoice.

Prepayment

Specify a prepayment invoice number that is unique to the company and vendor. (This is similar to an invoice number.)

Prepayment Amount

Specify the amount of the prepayment. For example, if you made a down payment of $5,000 on a $30,000 item, specify $5,000.

Prepayment Date

Specify the date of the transaction. This date is not used to calculate a due date.

Due Date

Specify the date the system should use to select the prepayment invoice for payment. Terms do not default on prepayments.

Remit To

To remit payment for the prepayment invoice to an alternate remittance location for the vendor, specify or select a valid remit to location code. If assigned, the prepayment invoice amount is accumulated to the vendor's remit to location balance, and the invoice payment is remitted to the address defined for the remit to location. If left blank, the vendor's normal remit to location defaults.

Currency

Select a valid currency code. Represents the currency of the prepayment invoice. If left blank, the invoice currency assigned to the remit to location, vendor, or vendor class, or the company base currency defaults.

Taxable Amount

Specify the total taxable amount of the prepayment invoice. If you specify a taxable amount and select a Tax Code, the system calculates the Tax Amount based on the rate defined for the tax code in Tax.

Tax Amount

The total tax amount of the prepayment invoice. If you specify values in the Taxable Amount and Tax Code fields, you can leave this field blank to automatically calculate the tax amount.

Tax Code

Specify or select a valid tax code to be applied to the prepayment invoice. Used to automatically calculate the tax amount for the prepayment invoice based on the tax rate(s) defined for the tax code in the Lawson Tax system. If left blank, the tax code assigned to the vendor or alternate vendor location defaults.

Note: Consider defining an accrual account specifically for prepayments.
To add a description, purchase order number, invoice accrual code, or hold code to the prepayment, use the Options tab.
To override default currency information for a nonbase currency prepayment, use the Options tab.
To override default payment information or define manual cash payment information, use the Payment tab.