Handling Prepayment Based Invoice — Exercises

Basic Data Setup

Basic Data Requirements for Prepayment Based Invoicing

Purpose: The purpose of this exercise is to set up basic data required for creating prepayment-based invoices.

Note: The basic data required will be found in the following link and will be the same as the data required for invoicing process.

General exercise for Manual Customer Invoicing
General exercise for Mixed Payment
General exercise for Shipment, Order Delivery

Setting Up the Method for Invoicing Prepayments

Purpose: The purpose of this exercise is to specify the method to be used when handling the invoicing of prepayments.

Windows:
Company

Open the Company window.
Click the Distribution/General tab.
Select your company by querying for it.
Select the prepayment-based invoice as the method to be used when invoicing prepayments from the Method for Invoicing Prepayments list.

Main Exercise

Purpose: The purpose of this lesson is to enable users to enter a payment on account for the customer order, invoice the prepaid amount, then create the final invoice for the customer order for the remaining amount.

Assume a customer has placed a customer order worth € 50,000, and the supplier expects an advance payment of € 10,000 from the customer before the goods are delivered. The customer, therefore will pay € 10,000 and the supplier will create an invoice for that amount. When the payment is done by the customer the goods will be delivered at a later date and the customer will then be invoiced for the remaining amount (€ 40,000). When invoicing the customer for the remaining amount a reference to the prepaid amount and invoice numbers will be given in the invoice.

Creating a Customer Order with a Required Prepayment Amount

Purpose: The purpose of this exercise is to create a customer order with an amount that the supplier requires from the customer to be paid before the goods/services are delivered.

Windows:
Customer Order
Handle Prepayment based Invoice

Open the Customer Order window.
Enter a customer order header and save it.
Enter a new customer order line and save. The total gross amount of the order must be larger than zero.
Right-click on the order header and select the option Handle Prepayment based Invoice.
In the Required Prepayment field, indicate the amount or the percentage. The amount cannot be larger than the customer order’s total gross amount including charges and the percentage cannot be larger than 100%.
If desired, you can select the Prepayment Approved check box. This will indicate that the customer has agreed on paying this amount. After this is approved, you cannot change the required amount unless you remove the approval.
Note: This step is optional.
The required prepayment amount can be seen in the Customer Order/Misc Order Info window.

Registering a Payment on Account with Reference to a Customer Order

Purpose: The purpose of this exercise is to enter a payment on account with a reference to the customer order.

Note: In order to enter a mixed payment, the basic data required to make the mixed payment should be set up.

Windows:
Mixed Payment

Open the Mixed Payment window and create a new record.
Enter your cash account or use the List of Values for the Cash Account field. You will get default values for currency, currency rate, and balance method if you have defined a default balance method for this account.
Set the Balance Method to either Detailed or Group.
Click the Transactions tab.
Create a new record. In the Mixed Payment Transaction Type list, click Enter Customer Payment.
In the Payer/Payee Identity field enter the customer’s ID of the customer order you saved earlier.
In the Amount field, enter the amount paid by the customer.
In the Order Reference field, using the List of Values, enter the customer order number saved earlier.
Save the payment transaction.
Right-click on the mixed payment header and select the option Approve.

Creating a Prepayment Based Invoice

Purpose: The purpose of this exercise is to create a prepayment-based invoice for a payment on account referring to a customer order.

Windows:
Customer Order
Handle Prepayment based Invoice

Open the Customer Order window.
Query for the customer order number saved before.
Right-click on the order header and select the option Handle Prepayment based Invoice.
In the Connected Payments tab, search for the payment on account registered earlier.
Right-click on the payment and select the option Create Invoice.
In the dialog box, review the description and the tax code.
Note: The tax codes are fetched from the customer order lines.
If desired, you can change the tax code using the List of Values that should apply.
To create a prepayment-based invoice, click Create. The invoice will be in status Preliminary. In this status it is possible to remove the invoice.
Note: You can create, print and off-set the invoice by clicking on the Create, Print and off-set button. The invoice will be in status Paid/Posted.
In the Prepayment Invoices tab, search for the created invoice. Right-click on it and this will open the Customer Invoice window, where you can analyze and eventually print the prepayment-based invoice.
In the Customer Invoice window, right-click on the invoice header and select the option Query Customer Invoice Postings, here you can analyze the special posting created for the prepayment-based invoice.

Creating the Final Customer Order Invoice with Connected Payments

Purpose: The purpose of this exercise is to create a final customer order invoice with a reference made to a prepayment-based invoice.

Note: In order to invoice the customer order, the lines shall be reserved, picked and delivered first.

Windows:
Customer Order
Create Customer Invoices
Customer Invoice
Print Customer Invoices

In the Customer Order window, query for your customer order. To verify that the parts for the customer order have been picked and delivered, view the Order History tab of the Customer Order window.
In the Create Customer Invoices window, search for the customer order.
Select the order line. Create a customer invoice by right-clicking and then clicking Create Invoice.
Open the Customer Invoice window, and search for the customer order. Observe that there are debit lines for the delivered goods/services and credit lines for the connected prepayments.
Print the invoice by right-clicking on the window and then selecting Print Invoice. Note down the identity of the customer order invoice. On the printout you will see the reference to the connected prepayment-based invoices.
In the Customer Invoice window, right-click on the invoice header and select the option Query Customer Invoice Postings. Here you can analyze the reverse of the special postings created for the prepayment-based invoice.