Process Prepayment Based Invoice
Explanation
This activity is used to handle, create and remove a prepayment-based invoice which is part of the customer
order flow. The prepayment-based invoice functionality is an alternative way of invoicing prepayments to the
advance invoice functionality. It is typically used in Poland. It consists in first registering the prepayment and
then, based on this, creating the prepayment invoice. If the prepayment-based invoice is created erroneously, it is
possible to remove it from the system as long as it has not been printed and posted, in the same way as credit
invoices can be removed while they are in status Preliminary.
Defining required prepayment amount for a customer order:
- On the header in the Handle Prepayment Based Invoice page, you can enter the amount required to be
paid in advance in the Required Prepay Amt field. The percentage that this amount represents will be
automatically calculated. Another option is to enter the percentage of the customer order gross amount (including
charges), which is required to be paid in advance, in the Percentage field. Then the amount will be
automatically calculated.
- If the customer has agreed to the prepayment amount, then select the Prepayment Approved option.
- On the Connected Payments tab, you can connect any available prepayments which are not yet connected
to a customer order.
Creating prepayment-based invoice:
- Open the Handle Prepayment Based Invoice/Connected Payments tab.
- Select the prepayment that has not been invoiced yet.
- Choose Create Invoice and the Create Prepayment Based Invoices dialog will open. Here you can
edit the suggested lines, description, tax codes, delivery type and amount. The amount can be edited only to be
less than or equal to the amount shown.
Removing prepayment-based invoice:
Once the invoice is created and in status Preliminary, if you need to do any changes to the tax code or
the amount, you need to remove it and create a new one.
- Open the Customer Invoice page and query for the required invoice.
- Select command Remove Prepayment Based Invoice.
Canceling prepayment-based invoice:
- The credit invoice will be in Canceled status.
Prerequisites
Defining required prepayment amount for a customer order:
- In the Method for Invoicing Prepayment field on the Company/Supply Chain Information/Sales tab,
the Prepayment Based Invoice option must be selected.
- The customer order header must at least be in the Planned status but not in Partially
Delivered, Delivered or Invoiced/Closed status.
- At least one order line or charge line must exist so that the order total is greater than zero.
- There should be no order lines or charge lines with multiple tax codes.
- Stage billing lines or sales contracts cannot exist for the customer order. Delivery confirmation may exist
if the company is set up to allow delivery confirmation with prepayment invoicing.
- The invoice cannot be a collective invoice.
Creating prepayment-based invoice:
- The prepaid but not yet invoiced amount must be larger than zero.
- To connect prepayments to a customer order on the Connected Payments tab, the customer order must not be in
Invoiced or Cancelled status and the amount required must be lesser than already connected
prepayments.
Removing prepayment-based invoice:
- The invoice must exist in the Preliminary status.
Canceling prepayment-based invoice:
- The credit invoice must exist in the Posted Auth status.
System Effects
Defining required prepayment amount for a customer order:
- On the customer order confirmation, the required prepayment amount information will be printed.
- When the required amount is larger than zero and the customer order is released, if the paid amount is less
than the required amount, then the order will get blocked. You can release the order on the Handle Blocked
Customer Orders page.
- When a prepayment is connected to a customer order via the Connected Payments tab, the payment amount
will increase.
- If the Prepayment Approved option is enabled on the Handle Prepayment Based Invoice page, then
the required amount cannot be changed.
Creating prepayment-based invoice:
- In the Create Prepayment Based Invoices dialog you can choose to just create, or create, print and
off-set the invoice by selecting Create or Create, Print and Off-set. If you select Create,
the prepayment invoice will be in status Preliminary. If you choose Create, Print and
Off-set, the invoice will be in status Paid Posted.
- The invoice lines will not have a part number but just the description as entered when creating the invoice.
E.g. PrePayment.
- One line per the combination of tax code and delivery type found in the customer order line will be shown. If
no delivery types are added, the lines will be grouped based on tax code only. If the tax code is changed the net
amount is recalculated from the gross amount.
- The amount shown on the invoice will be the difference between what the customer has paid and what has
already been invoiced.
- The Advance/Prepay Invoice option on the Customer Invoice page will get enabled.
- A new record will be created in the customer order history.
Note:
- Customer tax withholding is not supported for prepayment-based invoice.
- It is not possible to cancel Prepayment Debit Invoices in Paid Posted status.
Removing prepayment-based invoice:
- The invoice will be removed completely from the system.
- The invoiced amount will be decreased.