Prepayment (AP20.6)
Use Prepayment (AP20.6) to enter and maintain unreleased prepayment invoices in the Accounts Payable application. A prepayment is a deposit or payment made to a vendor before an invoice is received. Prepayment invoices do not contain expense distributions.
Processing Effect
When the prepayment is paid, Payment Closing (AP170) creates a released credit memo for the same amount as the prepayment invoice. The system-generated credit memos are defined as type "Y," have an invoice suffix number of "01," and be assigned the prepayment hold code defined on Vendor Group (AP00.1). You can then apply the invoice for which the prepayment was made to the system-generated credit memo on Credit Memo Application (AP35.1). The credit memo application process automatically removes the prepayment hold code from the system-generated prepayment credit memo, allowing the credit memo to be processed along with its applied invoice.