Set Up Customer Prepayments

Prepayments are advance payments on sales orders that are received, invoiced, and posted before the final invoice is issued. For example, you may require a deposit before you manufacture and ship an item to a customer. Prepayments let you invoice and collect advance payments from customers and post the payments against the correct invoices and accounts.

To set up customer prepayments

1. Choose the icon, enter Sales & Receivables Setup, and then choose the related link.

2. On the Numbering FastTab, verify that the number series for the Posted Prepmt. Inv. Nos. is the same as the Posted Invoice Nos.. Also verify that the number series for the Posted Prepmt. Cr. Memo Nos. is the same as the Posted Credit Memo Nos..

3. On the Prepayment FastTab, enter the following information.

   Field	Description
   Use Prepayment Account	Select to post prepayments using the subaccount specified in the Prepayment Account field in the Customer Posting Groups window.
   Create Prepayment Invoice	Select to create an invoice for the prepayment. If this field is not selected, an invoice for the prepayment will not be created.
   Posted Prepayment Nos.	Enter the code of the number series that you want to use for prepayment invoices.
   Posted PD Doc. Nos.	Enter the code of the number series that you want to use for prepayment documents.
   PD Doc. Nos. Type	Select if you want to use a number series or symbol to identify prepayment documents.
   Symbol for PD Doc.	Enter a symbol to be printed on prepayment documents.
   PD Gains Condition Dim Value	Enter the code for the dimension that is used to generate conditional prepayment gains.
   PD Losses Condition Dim Value	Enter the code for the dimension that is used to generate conditional prepayment losses.
   PD Gains Kind Dim Value	Enter the code for the dimension that is used to generate payment in kind prepayment gains.
   PD Losses Kind Dim Value	Enter the code for the dimension that is used to generate payment in kind prepayment gains.

4. Open the Customer Posting Groups window.

5. In the Prepayment Account field, specify the general ledger accounts that you want to use for posting customer prepayments.

6. Choose the Close button to close the window and save your entries.

You can now invoice and collect advance payments from customers and post the payments to the correct invoices and accounts.

See Also

Invoicing Prepayments
Walkthrough: Setting Up and Invoicing Sales Prepayments

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