Understanding Prepayment Processing

To track customer payments that are prepaid, you can use prepayment processing. Customers can prepay by using cash, check, or credit card. If a customer has already paid for a service contract or work order, the invoice reflects that the contract or work order has been prepaid.

The two types of prepayment transactions are:

• Two-party prepayment

  Two-party prepayments are typically cash or check transactions that occur between you and the customer. When an order is prepaid with cash or a check, the system indicates the prepayment form, transaction, and total amount on the invoice.

• Three-party prepayment

  Three-party prepayments typically are credit card transactions that occur between you, the customer, and the credit card company. In the system, the transaction is an electronic transmission of transaction information between the bank, the credit card company, and the credit card processor.

The prepayment processing system provides an interface between JD Edwards EnterpriseOne software applications and a seller's designated credit card processor. With the prepayment processing system, you can integrate credit card authorizations and final settlements with the business processes.

For three-party payment transactions, JD Edwards does not provide middleware or credit card transaction processors. To complete credit card prepayment processes, you must select a credit card processor, a third-party vendor, or a middleware solution with which you can transmit information between the software, the credit card company, and the bank.