Applying Prepayments to Invoices and Expense Reports

You can apply the available amount of Item type distributions from a Temporary type prepayment to one or more invoices to offset the amount you pay on the invoice(s). If you entered the prepayment as a Permanent type and want to apply it, you can query the prepayment in the Invoices window and change the Prepayment Type to Temporary.


You can apply a prepayment in the following ways:
  • Applying Prepayments in the Invoice Workbench
  • Applying Prepayments in the Quick Invoices Window
  • Applying Prepayments to Invoice Records in the Payable Open Interface
  • Applying Prepayments to Expense Reports
Applying Prepayments in the Invoice Workbench
When you apply a prepayment to an invoice, you can see all available prepayment Item distributions for the same supplier in the Apply/Unapply Prepayments window. You can partially apply a Prepayment distribution by applying only a portion of its available amount.

To apply a prepayment, you can either create or query the prepayment and then select the invoice to which the prepayment will be applied, or you can create or query the invoice and then select the Prepayment distributions you want to apply. If you want to apply specific Prepayment Item distributions to the invoice, then you must query the invoice and apply the prepayment to the invoice. Otherwise, Payables will apply the amount of the application across the available Prepayment Item distributions, starting with the first Prepayment Item distribution, up to the application amount.

When you apply a prepayment, you can print a Prepayment Remittance Notice, which you can send to the supplier. This notice states that a prepayment has been applied to an invoice and this may result in a decreased payment or nonpayment of the invoice.

Applying Prepayments to Expense Reports
In the Expense Reports window, you apply prepayments, also known as advances, to expense reports during expense report entry. You can specify whether you want Payables to apply to an expense report all outstanding and available advances, one specific advance, one specific advance Item distribution, or a certain maximum amount of advances. Unless you specify a specific advance to apply, Payables applies all outstanding, available advances, starting with the oldest, up to the amount of the expense report. If you do not specify an advance Item distribution to apply, then Payables applies available advance Item distributions, starting with the one with the lowest distribution number.

For expense reports entered in Internet expenses, advances are applied during Expense Report Export if the Apply Advances Payables option is enabled. Payables applies all outstanding, available advances, starting with the oldest, up to the amount of the expense report.

Thanks

Guys,

Thanks for posting such great articles. Really nice way to explaining the topics.

can anyone pls explain me the

can anyone pls explain me the below concept? A Prepayment has been fully applied to the invoice. The Prepayment distribution has 1Item line, 1Tax line and 1Miscellaneous type line. In this case, how will the Miscellaneous type line be applied to the Standard invoice?