Creating Prepayments

This section provides an overview of prepayment processing and discusses how to view and add prepayment invoices, and enter details for new prepayment invoices.

Page Name

Definition Name

Usage

Create Prepayment Invoice - Inquiry Page

EM_PPY_INQUIRY

View existing prepayment vouchers and add new prepayment invoices.

Create Prepayment Invoice - Invoice Details Page

EM_VCHR_PPY

Enter or view details for a prepayment invoice.

Down payments and prepayments are common practice worldwide. Most organizations, at one time or another, need to pay for goods or services before an invoice is received. For example, when a company sets up a new customer account with a supplier, the supplier may require prepayment on the first one or two orders before extending credit to the buyer.

In the Buyer Direct model, use the PeopleSoft Payables pages to create and process prepayments.

In the Business Services Provider model, use the PeopleSoft eSettlements pages to create prepayment invoices. The prepayment feature does the following:

  • Allows a payment to be made to a supplier without an invoice.

  • Applies VAT to the prepayment.

  • Facilitates the application of the prepayment to the final voucher.

In the Business Services Provider model, these are the steps for prepayment processing:

  1. Buyer creates the prepayment invoice.

  2. Buyer or system administrator processes the payment as they would any other payment.

  3. The system administrator runs the Voucher Post Application Engine process (AP_PSTVCHR) in PeopleSoft Payables to associate the prepayment voucher with the regular voucher after the invoice is received from the supplier.

Use the Create Prepayment Invoice - Inquiry page (EM_PPY_INQUIRY) to view existing prepayment vouchers and add new prepayment invoices.

Navigation:

eSettlements > Payments > Create Prepayment Invoice > Create Prepayment Invoice - Inquiry

Enter search criteria to view a list of existing prepayment vouchers.

Note: If a given buyer has not yet established any agreements with suppliers, the system will not return any search values.

Field or Control

Description

Add a New Prepayment

Click this button, then add invoice details and create the invoice.

Invoice ID

Click a link in this column to view the details of the existing prepayment.

Use the Create Prepayment Invoice - Invoice Details page (EM_VCHR_PPY) to enter or view details for a prepayment invoice.

Navigation:

  • Click the Add a New Prepayment button on the Create Prepayment Invoice - Inquiry page.

  • Click an Invoice ID link on the Create Prepayment Invoice - Inquiry page.

Field or Control

Description

Supplier and Supplier Location

Select the supplier and location to which you are making the prepayment.

Invoice and Invoice Date

Enter the date and number of the invoice which the supplier created, but you have not received.

Gross Amount

Enter the amount that you must pay the supplier.

VAT

Enter the actual VAT amount for the invoice, if applicable.

Merchandise Amount

Displays the amount of the invoice less any VAT amount.