Prepayments for accounts payable

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

In this country, the net method is used for prepayment processing:

  1. Optionally, the user sets up the purchase agreement.
  2. The user creates the purchase order.
  3. The user creates one or several prepayment requests, with the contract or reference number.
  4. Optionally, the user includes these requests in the approval process for supplier invoices.
  5. The user transfers the requested cash. The user includes the prepayment requests in the payment proposal process or process them manually.
  6. Optionally, the user adds VAT.
  7. The user enters the final invoice, with the reduced amount and the contract or reference number, and connects the invoice to several prepayments. The user can change the amounts.
  8. The user matches the purchase order with the invoice and the connected prepayments.

    The invoice and the connected prepayments are automatically reconciled in the background.

Configuration guidelines

Program ID Program name Description or comment
CRS405 FAM Function. Open

Configure FAM function AP10.

Create additional FAM functions for the prepayment net process, with these prepayment types in the Prepayment field:

  • 2-Post fiscal prepayment invoice (net)
  • 4-Post fiscal final invoice (net)

For each AP10 FAM function, set the Invoice ref (Invoice reference number) field to 3-Yes, 3 add fields can be used.