Prepayment Application and Payment

Complete the following steps to apply and pay regular and prepaid vouchers:

1. Create the prepaid voucher.

2. Pay the prepaid voucher.

   Note:

   Prepaid vouchers must be paid before a regular voucher can be applied to them. They do not need to be payment-posted.

   The accounting entries that are created for prepaid voucher during voucher posting include

   • Prepaid expense account (122000): 1000.00 Debit.

   • Accounts payable account (200000): 1000.00 Credit.

3. Create a regular voucher.

   Note:

   Regular vouchers must be approved before they can be applied to prepaid vouchers using either the batch or manual application processes.

4. (Optional) Manually apply the regular voucher to the prepaid voucher.

5. Run the Voucher Posting process for the regular voucher.

   The Voucher Posting process calls the AP Prepayment Application Engine process (AP_PPAY_APPL), which applies regular vouchers to prepayments.

6. Run the Pay Cycle Application Engine process (AP_APY2015) to pay the regular voucher payment.

   The Pay Cycle process pays the regular voucher payment schedule, which was reduced in prepayment application.

   An advice routine selects invoice information from applied prepaid vouchers, so they appear on the payment advice. This advice lists regular vouchers that are applied to prepayments.

Note:

If you run the Pay Cycle process before running the Voucher Posting process for the regular voucher, the regular voucher is paid in full, because the AP Prepayment Application process will not have been run. Use the manual application process to run the Pay Cycle process before the Voucher Posting process.