How You Create and Apply Prepayments to Transactions

Use AutoInvoice both to generate prepayment invoices and credit memos from advance payments and to apply prepayment invoices to the applicable final standard invoices.

You create and apply prepayment transactions against the applicable primary ledger and all business units assigned to this primary ledger. You can only process prepayment transactions in the ledger currency.

You can enable document sequencing on prepayment invoices and credit memos using the Sequencing section of the Specify Options page of the primary ledger.

Creating a prepayment invoice and applying a prepayment invoice to a final invoice are two different processes. You can't submit a prepayment invoice and its corresponding final invoice in the same process.

You use the the AutoInvoiceImportTemplate both to prepare and create prepayment invoice lines and to apply existing prepayment invoice lines to final invoices.

Create Prepayment Invoices

Use the AutoInvoiceImportTemplate to prepare your prepayment invoice lines and upload them to the AutoInvoice interface tables for import.

Download the AutoInvoiceImportTemplate and populate the template with the prepayment invoice lines from the advanced payments you have received. After upload to the AutoInvoice interface tables, submit the Import Receivables Transactions Using AutoInvoice process to create the prepayment invoices.

To create prepayment invoices:

1. Navigate to the File-Based Data Import for Financials guide.
2. In the Table of Contents, click Receivables.
3. Click AutoInvoice Import.
4. In the File Links section, click the link to download the Excel template.
5. Populate the template with the prepayment invoice lines from your customer advanced payments.
6. After you complete the data preparation, click the Generate CSV File button to generate a ZIP file containing the CSV files.
7. In Scheduled Processes, select and submit the Load Interface File for Import process to load the invoice lines into the AutoInvoice interface tables:
   • In the Import Process parameter, select Import AutoInvoice.
   • In the Data File parameter, select the CSV ZIP file you generated.
8. In Scheduled Processes, select and submit the Import Receivables Transactions Using AutoInvoice process to create the prepayment invoices:
   • Select a business unit assigned to the primary ledger, or leave the Business Unit parameter blank to run the process on all applicable business units.
   • Select a Prepayment transaction source.
   • Enter the Default Date.
   • Select a Prepayment transaction type.
9. After the AutoInvoice Import process completes, navigate to the Manage Transactions page to review the prepayment transactions.
10. In the Search section of the Manage Transactions page, click the Advanced button.
11. Select one of the required search parameters.
12. Select Yes in the Prepayment field.
13. Click the Search button.
14. Review the prepayment transactions.
    Note:
    All prepayment transactions are created as Complete. The Incomplete button is disabled on prepayment transactions.

Apply Prepayment Invoices to Receivables Invoices

Use the AutoInvoiceImportTemplate to prepare existing prepayment invoice lines for application against final invoices from your customers.

During the prepayment application process, the original accounting and tax lines of the prepayment invoice lines are reversed, and the outstanding balance of the final invoice is reduced or closed by the amount applied.

To apply prepayment invoices to final invoices:

1. Download the AutoInvoiceImportTemplate.
2. Populate the template with:
   • Sales invoice lines.
   • Prepayment lines in negative amounts.
3. If necessary, populate any Additional Line Descriptive Flexfield attributes for any of the prepayment application lines.
   Note:
   The combination of the Additional Line Descriptive Flexfield attributes must match exactly the combination of the Line Transaction Descriptive Flexfield attributes in the prepayment invoice. Otherwise, the AutoInvoice Import process ends in error.
4. After you complete the data preparation, click the Generate CSV File button to generate a ZIP file containing the CSV files.
5. Submit the Load Interface File for Import process to load the invoice lines into the AutoInvoice interface tables.
6. Submit the Import Receivables Transactions Using AutoInvoice process to apply the prepayment invoices to the sales invoices.
   Note:
   The sales invoice transaction type must be different from the prepayment transaction type.

The accounting for prepayment applications is maintained in the Prepayment account only, and not the Revenue account. This account maintains the remaining amount due on any open receivables against the customer.