Dynamics GP Purchase Order Prepayments

September 04 | By Tracey Brinkman

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Dynamics GP Purchase Order Prepayments

Dynamics GP Purchase Order Prepayments – Setup

If your company wants to process Prepayments for Purchase Orders, the first step is in Purchase Order Processing Setup.

Allow Purchase Order Prepayments

Mark to enter a prepayment amount for a purchase order and generate the prepayment as computer check in Payables Management.

You can unmark this option:

  •  If there are no unposted prepayments in a batch.
  • A prepayment amount entered for a purchase order that hasn’t been received against.

Create manual prepayment from Purchase Order Processing

Mark to enter a manual prepayment for a purchase order.

When this option is unmarked and you enter a prepayment amount for a purchase order, the prepayment must be generated using the computer check process.

This field is available when the Allow Purchase Order Prepayments option is marked.

Prepayment Password

Assign a password that will be required to use when entering prepayments.

If this field is blank, no password will be required.

This field is available when the Allow Purchase Order Prepayments option is marked.

Prepayment Account

Enter the account to be used as the default posting account when you post prepayments.

If you don’t enter a posting account here, the prepayment account entered in the Posting Account Setup window for the Purchasing series will be used as the default entry.

This field is available when the Allow Purchase Order Prepayments option is marked.

 

Dynamics GP Purchase Order Prepayments – Processing

By marking the Allow Purchase Order Prepayments option in the Purchase Order Processing Setup window, you can enter a prepayment amount for a purchase order and generate the prepayment as computer check in Payables Management.

You can enter a prepayment for a New, Released, or Change Order purchase order that hasn’t been received or invoiced against.

You can only enter one prepayment for each purchase order.

After entering a prepayment amount, you can choose the Prepayment expansion button to open the Purchasing Prepayment Entry window.

  • If the prepayment is a computer check and you have set up a default prepayment account, you don’t have to open the Purchasing Prepayment Entry window unless you want to change the default prepayment account.

 

  • If the prepayment is a manual payment, you can use the Purchasing Prepayment Entry window to enter information such as the prepayment account, payment type, and payment method.

When you save a purchase order that has a computer check prepayment entered for it, the payment information is saved, but not posted. The prepayment is posted when completing a computer check run for the prepayment in Payables Management.

If you have entered a manual prepayment for the purchase order, the manual prepayment is posted to Payables Management when saving the purchase order, creating a posted manual payables payment.

  • You can receive or invoice against the purchase order after you post the prepayment for the purchase order.
  • When you receive or invoice against the purchase order with a posted prepayment, the posted prepayment is applied to the shipment/invoice or invoice.
  • If items for a purchase order are fully received or invoiced against when posting a shipment/invoice or invoice, any remaining prepayment amount is an unapplied payment in Payables Management.
  • You can apply the remaining prepayment using the Apply Payables Documents window to other documents for the vendor.
  • A purchase order with a prepayment must be closed or canceled before the unapplied payment can be applied.

Dynamics GP Purchase Order Prepayments – Workflow

If the workflow status for a purchase order is Not Submitted, Recalled, Rejected, and Pending User Action, you should verify that manual payment is allowed for this purchase order before to entering the prepayment.

The information in this document comes mostly from the Help Text with screenshots added.

If you have additional questions about Dynamics GP Purchase Order Prepayments please contact us at: support@isolutionspartners.com

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