Understanding Prepayment Processing

This section discusses:

• Prepayment overview.

• Prepayment application and payment.

• Prepayment posting.

• Prepaid and regular voucher cross-reference record.

• Discounts and prepayment application.

• Regular voucher application to prepaid voucher with withholding and taxes enabled.

• Prepayment cancellation.

• Prepaid and applied voucher closure.

• Manual prepayment application example.

• Accounting entry example 1: prepayment without value-added tax (VAT) or withholding.

• Accounting entry example 2: prepayment with 100% VAT on regular voucher.

• Accounting entry example 3: prepayment with 100% VAT on payment.

• Accounting entry example 4: prepayment with 5% prorated, nonrecoverable VAT.

• Accounting entry example 5: prepayment with withholding.

• Accounting entry example 6: prepayment with excise as part of withholding calculations.

• Accounting entry example 7: prepayment with excise not part of withholding calculations.

• Recurring prepayment vouchers.