1. Accounts Payable Implementation Guide
  2. Prepayments

Prepayments

These processing options specify how the program processes prepayments. Use prepayments to pay for goods or services before you receive an invoice.

1. G/L Offset Account

Enter the code for the GL offset account that the system uses to create prepayment pay items. You must enter a value to enable automatic creation of prepayment pay items. If you leave this processing option blank, the system creates a standard voucher instead of a prepayment voucher.

Note: If JD Edwards World and JD Edwards EnterpriseOne software coexist, do not use code 9999. In JD Edwards World this code is reserved for the post program and indicates that offset accounts should not be created.
2. G/L Distribution Account

Specify the GL distribution account that the system uses for creating prepayment pay items.

You can use one of these formats for account numbers:

  • Structured account (business unit.object.subsidiary.

  • 25-digit unstructured number.

  • 8-digit short account ID number.

  • Speed code.

The first character of the account indicates the format of the account number.

You define the account format in the General Accounting Constants program (P000909).

Note: Use this processing option only if you enter a valid value in the G/L Offset Account processing option.
3. Pay Status Code

Complete this processing option only if you enter a valid value in the G/L Offset Account processing option. Enter the default pay status code for prepayments. The JD Edwards EnterpriseOne Accounts Payable system does not print payments for any codes other than the codes provided in this valid codes list:

P: The voucher is paid in full.

A: The voucher is approved for payment, but not yet paid. This applies to vouchers and automatic cash applications.

H: The voucher is on hold pending approval

R: Retainage.

%: Withholding applies to the voucher.

4. Number of Days

Enter the number of days to add to the due date of the negative prepayment pay items. This processing option is valid only if JD Edwards World and JD Edwards EnterpriseOne software coexists.

5. Tax Area

Enter 1 to specify that the system displays the Prepayment Tax form. Complete this processing option only if you enter a valid value in the G/L Offset Account processing option.

You use the Prepayment Tax form to assign tax codes to negative pay items that are different from the tax codes for the corresponding positive pay items. This is necessary, for example, when tax laws treat positive pay items and negative pay items differently. Otherwise, the system automatically generates a negative pay item for each positive pay item, assigning each negative pay item the same tax area code and tax explanation code as its corresponding positive pay item.

If you specify a tax area code and tax explanation code on the Prepayment Tax form, the new codes appear on all negative pay items, overriding the original tax area codes and tax explanation codes on the positive pay items. For example, if there are several positive pay items, each of which specify a different tax area code and tax explanation code, but you specify a particular tax area code and tax explanation code on the Prepayment Tax form, the system assigns the tax area code and tax explanation code you specify on the Prepayment Tax form to all negative pay items.

6. Prepayment Tax Area Code

Complete this processing option only if you enter 1 in the Tax Area processing option. Enter a default code that identifies a tax or geographic area that has common tax rates and tax distribution. The system uses this code to properly calculate the tax amount. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province), and their rates. To be valid, a code must be set up in the Tax Rate/Area table (F4008).

Typically, U.S. sales and use taxes require multiple tax authorities per tax rate/area, whereas VAT requires only one tax.

7. Prepayment Tax Explanation Code

Complete this processing option only if you enter 1 in the Tax Area processing option. Enter a value that exists in the Tax Explanation Codes (00/EX) UDC table to specify a default tax explanation code for transactions with a certain supplier. This value controls how a tax is assessed and distributed to the general ledger revenue and expense accounts.