Prepayment Invoicing and Applications Using a REST API

Prepayment invoices and sales invoices with prepayment application lines can now be created and managed using the Receivables Invoices REST API. This functionality extends support for prepayment processing beyond the Import AutoInvoice process and user interface, providing greater flexibility for system integrations and automated workflows. Users can efficiently handle the end-to-end process for prepayment invoicing through API-based solutions.

Use the enhanced Receivables Invoices REST API to:

Create prepayment invoices using the POST operation of receivablesInvoices REST APIs.
Create sales invoices with prepayment application lines using the POST operation of receivablesInvoices REST APIs.

Business Benefit

By leveraging REST operations, organizations can efficiently generate prepayment invoices and apply them to sales invoices, simplifying the entire process. This not only speeds up invoice handling but also reduces the potential for errors, ensuring a more accurate and efficient accounts receivable workflow.

Steps to Enable

Before you create and apply prepayment invoices, complete these steps:

Create Prepayment Receivables activities.
Set up prepayment transaction types.

1. 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.

Open a Create Receivables activity page
Set the Activity Type to Prepayment
Set the GL Account Source field to Activity GL Account.
In the Activity GL Account Source field, enter the account where prepayment invoice distributions will be created.
Set the Tax Rate Code Source field to None.
Select the Prepayment Invoice Applications value for this Receivables activity:
- Use any prepayment: Allows application of eligible prepayment invoice lines against sales invoice.
- Use paid prepayments only: Allows application of only fully paid prepayment invoice lines against sales invoice.

Prepayment receivable activity

Prepayment Receivables activity

2. Create Prepayment Transaction Types.

Create one or more prepayment transaction types with the Transaction Class of Invoice and the Transaction Subclass of Prepayment.

Open a Create Transaction Type page
Use a name that identifies the transaction type as a prepayment transaction type.
In the Transaction Class field, select Invoice.
In the Transaction Subclass field, select Prepayment.

Review the REST service definition in the REST API guides (available from the Oracle Help Center > your apps service area of interest > APIs & Schema). If you are new to Oracle's REST services you may want to begin with the Quick Start section.

Tips And Considerations

Prepayment invoice can have only one line.
Prepayment and sales invoice creation and application is only supported in the ledger currency. Foreign currency transactions are not supported.
Prepayment invoices can only be applied to sales invoices of the same customer, transaction source, business unit, and currency.
Sum of Prepayment application amount cannot exceed sales invoice line amounts.
Prepayment application lines must have negative line amounts only.
Other transaction activities, including disputes and adjustments, on prepayment invoices and sales invoices with prepayment lines are not supported using SOAP or REST API services.
You can only credit the full prepayment invoice or sales invoice with prepayment application lines. Partial credits are not supported.
You must credit a sales invoice with prepayment applications before crediting the prepayment invoice.
Overapplication on prepayment lines or prepayment application lines (sales invoice) is not supported.
Deferring revenue recognition using revenue contingencies and invoicing rules is not supported.
Prepayment invoices can only be applied during creation of sales invoices.
Multifund Account Receivables (MFAR) is not supported for prepayment invoices.

Key Resources

Access Requirements

No new access requirements.