Vendor Prepayment

Important:

There is a greater fraud risk, for example, through business email compromise when making a payment not linked to an invoice or purchase order. When creating and authorizing a vendor prepayment, it is recommended that you verify both the authenticity of the payment as well as the payment beneficiary account.

Vendor prepayments can be created and processed to pay the vendors. To enter vendor prepayment information, see Entering Vendor Prepayments.

The SuiteBanking subtab was introduced in the vendor prepayment record, which populates the details from the vendor record. Payments processed with HSBC GL are processed with Payment Automation SuiteApp. The automated payment checkbox will be enabled in the SuiteBanking subtab.

You can process vendor prepayments with ACH, Check and VCard payments. The vendor prepayment would be sent for processing in the next hourly batch during business days. For more information, see Payment Batch Cut-Off Times Overview.

The validations that apply when creating a bill payment: ACH limit, weekend and holiday validation, and role requirement for 2FA per session.

Status tracking can be done through the SuiteBanking tab. For more information see, Overview of Payment Statuses.

Note:

Apply vendor prepayment only when payment status is marked Paid.

In case of Failed payments, if the record status is Paid, the vendor prepayment will be automatically voided and the voiding journal will be automatically created. If the record status is Partially Applied or Fully Applied, the vendor prepayment cannot be voided and the user has to manually delete the Vendor Prepayment Application, then void the vendor prepayment.

In case of Data Error or ACH Payment Return payments, if the record status is Paid, the reprocessing payments is allowed. Vendor prepayment will be auto-voided and a new vendor prepayment is created. If the record status is Partially Applied or Fully Applied, reprocessing payments is not allowed. The user has to manually delete the Vendor Prepayment Application before reprocessing payment to void the vendor prepayment.

Payment Status	Record Status	Action
Failed	Paid	The vendor prepayment will be automatically voided and the voiding journal will be automatically created.
Partially Applied or Fully Applied	The vendor prepayment cannot be voided and the user has to manually delete the Vendor Prepayment Application, then void the vendor prepayment.
Data Error or ACH Payment Return	Paid	The reprocessing payments is allowed. Vendor prepayment will be auto-voided and a new vendor prepayment is created.
Partially Applied or Fully Applied	Reprocessing payments is not allowed. The user has to manually delete the Vendor Prepayment Application before reprocessing payment to void the vendor prepayment.

Payment Status

Record Status

Action

Failed

Paid

The vendor prepayment will be automatically voided and the voiding journal will be automatically created.

Partially Applied or Fully Applied

The vendor prepayment cannot be voided and the user has to manually delete the Vendor Prepayment Application, then void the vendor prepayment.

Data Error or ACH Payment Return

Paid

The reprocessing payments is allowed. Vendor prepayment will be auto-voided and a new vendor prepayment is created.

Partially Applied or Fully Applied

Reprocessing payments is not allowed. The user has to manually delete the Vendor Prepayment Application before reprocessing payment to void the vendor prepayment.

For more information about payment statuses, see Overview of Payment Statuses.

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