Applying Prepayments to Invoices
You can apply a Temporary type prepayment to one or more approved invoices to offset the amount you pay on the invoice(s). If you entered the prepayment as a Permanent type and want to apply it, you can query the prepayment in the Invoices window and change the Prepayment Type to Temporary.
When a prepayment is applied to an invoice, Payables automatically creates a negative distribution and a negative scheduled payment for the prepayment in the amount of the application. Payables also reduces the Amount Available for prepayment by the amount applied. You can see the original amount of the prepayment in the Amount field of the Invoice Overview. Payables updates the status of an invoice paid by a prepayment to reflect the invoice as being paid by the prepayment application. You can review all payment information for the prepayment and the invoice(s) to which it was applied in the Payments window of the Invoice Workbench.
When you apply a prepayment, you can choose to print a Prepayment Remittance Advice to send to the supplier to notify them that a prepayment has been applied to their invoice which may result in a decreased payment or non-payment to the supplier.
You can either select an invoice and apply a prepayment to it, or select a prepayment and apply it to an invoice.
Prerequisites
The prepayment is type Temporary, paid, approved, not cancelled, has no active holds, and has not already been fully applied.
The prepayment has the same supplier, invoice currency, and payment currency as the invoice.
To apply a prepayment to an invoice:
1. In the Invoices window, query either the prepayment or the invoice to which you want to match it.
2. Choose the Actions button and check the Apply/Unapply Prepayments check box. Choose OK.
- If you initially queried an invoice, Payables displays all available prepayments which you can apply to the invoice. If you want to limit available choices, enter a query or use the Find Prepayments to Apply window by choosing Find from the Query window.
Select each prepayment you want to apply. Enter the Amount To Apply to the invoice. Optionally change the GL Date, which is the accounting date for the reversing prepayment distributions that Payables creates when you apply a prepayment. If you want to see more information on a prepayment, select it and choose Invoice Overview.
- If you initially queried a prepayment, Payables displays all approved and not fully-paid invoices to which you can apply the prepayment. If you want to limit available choices, enter a query or use the Find Invoices to Apply window by choosing Find from the Query window.
Select each invoice to which you want to apply the prepayment. Enter the Amount To Apply to each invoice. Optionally change the GL Date, which is the accounting date for the reversing prepayment distributions that Payables creates when you apply a prepayment. If you want to see more information on an invoice, select it and choose Invoice Overview.
If you want to approve the new prepayment distributions that the application will create and the Allow Online Approval Payables option is enabled, select Approve. If the Allow Online Approval Payables option is not enabled, you can submit Approval from the Submit Request window.
If you want to print a Prepayment Remittance Advice for the supplier, select Print.
3. Choose the Apply/Unapply button to apply the prepayment amount(s) to the invoice(s) and to save your work.
See Also
Prepayment Restrictions
PREPAYMENT APPLICATION RESTRICTIONS
ENCUMBRANCE: If you use Encumbrance accounting, you must enter a GL Date in a period that is within the latest encumbrance year.
