Prepayments for accounts receivable
Requirement
To secure the payment of deliveries, prepayments are used in some countries before the order is processed. One or several orders are connected with a contract or reference number.
In this country, advance invoices and prepayments are commonly used before delivery.
M3 solution
The net method and the gross method are supported:
- With the net method, the amount of the final invoice is reduced with the already prepaid amounts.
- With the gross method, the final invoice shows the full amount of the order, regardless of prepayments.
In this country, the net method is used for prepayment processing:
- Optionally, an agreement, that is, the contract, is set up.
- The customer sends a customer order.
- The supplier sends one or several prepayment requests with the contract or reference number that is included in the bill for prepayment.
- The customer sends money for the prepayment request.
- Optionally, the supplier sends a fiscal invoice as a VAT receipt of the payment.
- The supplier produces and delivers goods.
- The supplier sends a final invoice, in which the order amount is reduced with prepayments.
Prepayment handling is only supported for the customer order process (COM).
For final invoices, additional information is printed in accordance with the EU invoicing rules:
- VAT amount based on prepayments
- Total VAT amount based on the total invoice amount
- VAT amount to be paid based on the final invoice amount
- Total amount per VAT rate
- Total VAT amount in local and foreign currency
- Organization number
All legal requirements in this country for rounding amounts off to whole amounts in invoices are supported by M3.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| CRS722 | Settings – Customer Order Invoicing |
Specify this information:
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