Follow these steps to manage prepayments in Acumatica
Vendors sometimes require prepayments before shipping items. Below is the workflow for creating prepayments, paying the prepayment and creating the final bill.
Create the Prepayment
- Create a Purchase Order in the Purchases module:
- Take the Purchase Order off hold by clicking “Remove Hold from the header (a Prepayment cannot be created for POs On Hold):
- Verify the Status has changed to “Open,” then click the three dots in the header and choose “Create Prepayment Request.”
- This will create open a new screen in Bills and Adjustment. A document of the Prepayment type will be created for the entire amount of the purchase order:
- Adjust the Prepayment Percent on the line(s) to match the amount of the prepayment (deposit) owed to the vendor:
- Take off of hold and Release the Prepayment using the RELEASE button at the top of the screen. This will put the prepayment as an open document to pay for this vendor. It also shows on the Aging as an open Prepayment.
Pay the Prepayment
- Pay the prepayment by printing checks. Follow the steps for paying bills by print a check or creating a bank draft. This can be done directly from the Prepayment or from the Processes under the Prepare Payments screen.
- Review the original purchase order. Review the Prepayments tab on the purchase order to see the Prepayment linked with the purchase order. The status of the prepayment will be “Open” until it has been applied to the final bill:
Create the Final Bill for the Last Vendor Invoice and Apply the Prepayment
- Once the items have been received on the purchase order using the purchase receipt workflow, the final bill is created for the last vendor invoice.
- Enter the final bill on the Bills and Adjustments screen and associated the bill with the purchase receipt. Note that the entire amount of the purchased items is listed and the prepayment has been applied with the balance showing due.
- Physical count data can also be imported from an excel sheet. Let me know if you would like instructions on this.
Accounting transactions during the process:
- Creating the Purchase Order – No effect on the GL.
- Releasing the Prepayment – No effect on the GL.
- Paying the Prepayment – Debits Deposits to Vendor* account, credits Cash. (Deposit to Vendor* account from the vendor settings).
- Purchase Receipt (receiving the PO) – Debits Inventory or Expense, credits PO Accrual account.
- Releasing the AP Bill, with Prepayment applied – two transactions are created. One Debits AP and credits Deposits to Vendor* to close out the prepayment. The second PO Accrual, credits AP
- Paying the bill – Debits AP, credits Cash