Create Prepayment Receivables Activities

Use the Manage Receivables Activities page to create a Prepayment Receivables activity for each business unit that will create and use prepayment invoices.

The Prepayment Receivables activity designates a separate general ledger account for all prepayment distributions. You can't create prepayment transactions unless a Prepayment Receivables activity is defined for the applicable business unit.

To create a Prepayment Receivables activity:

1. Navigate to the Manage Receivables Activities page.
2. Click the Plus (+) icon to open the Create Receivables Activity page.
3. In the Business Unit field, select the business unit you want.
4. In the Name and Description fields, enter a name and description that identifies this specific Prepayment Receivables activity.
5. In the Activity Type field, select Prepayment. When you select this value, the page:
   • Displays the Prepayment Invoice Applications field.
   • Sets the GL Account Source field to Activity GL Account and read-only.
   • Sets the Tax Rate Code Source field to None.
6. In the Prepayment Invoice Applications field, select the application criteria to use:
   • Use any prepayment: Allows application of eligible prepayment invoice lines against a sales invoice.
   • Use paid prepayments only: Allows application of only fully paid prepayment invoice lines against a sales invoice.
7. In the Activity GL Account Source field, enter the account where prepayment invoice distributions will be created.
8. Save your work.