This article describes how to use the vendor prepayment functionality in Dynamics AX 2012.
The creation of a prepayment from the purchase order is done in 4 steps:
In the AP parameters, setup this new posting profile for the prepayment transactions, and select your option for the sales tax.
The first step is to create the purchase order:
You must create a payment journal to pay the prepayment to the vendor:
The final step of the prepayment process is to settle the payment against the final invoice. Go to the purchase order form.
The creation of a prepayment from the purchase order is done in 4 steps:
- Step 1: Setup the prepayment,
- Step 2: Create the prepayment invoice,
- Step 3: Payment journal,
- Step 4: Link the prepayment in the final vendor invoice.
1. Prerequisites
To use the prepayemnt functionality, you
need to setup a specific vendor posting profile (generaly the prepayment
general account is different to the vendor account).
Access: Accounts payable > Setup > Vendor posting profilesIn the AP parameters, setup this new posting profile for the prepayment transactions, and select your option for the sales tax.
2. Purchase order
Access: AP > Common > Purchase orders > All purchase order.The first step is to create the purchase order:
- Click on New to create a new purchase order
- Select the vendor account
- Select the item and the quantity
- Enter all informaiton you need
- And confirm the purchase order
3. Setup the prepayment
You must set up the prepayment that will be associated with the purchase order:- Go to the tab “Purchase”
- And click on “Prepayment”
- Choose between fixed amount or a percent amount. Exemple: you need to pay $100 (select fixed) or you need to pay 30% of the invoice (select percent).
- Click on Save
4. Prepayment invoice
The next step is to post the prepayment invoice:- Go to the tab “Invoice”.
- And click on “Prepayment invoice”.
- The field Prepaymentmust be selected.
- Enter the invoice number and the invoice date.
- The amount is automatically field with the prepayment setup option (previous step).
- Post the invoice.
5. Payment journal
Access: AP > Journals > Payments > Payment journalsYou must create a payment journal to pay the prepayment to the vendor:
- Create a new journal,
- And go to the lines form.
- Enter the vendor number in the field “Account”
- Click on Functions > Settlement
- Mark the prepayment line.
- Payments informations will be transfered automatically to the journal lines.
- Enter the offset account (Bank account)
- Check in the payment tab that the posting profile is the one for prepayment.
- Select (if needed) the Method of payment
- When the status is correct (depends of the setup of the method of payment), post the journal.
6. Final vendor invoice
Access: AP > Common > Purchase orders > All purchase order.The final step of the prepayment process is to settle the payment against the final invoice. Go to the purchase order form.
- Open the purchase order
- Receive the product : click on “Product receipt”, enter the receipt number and validate.
- The purchase order status must be “Received”
Click on “Invoice” button (tab invoice)
- Click on “Apply prepayment” to link the prepayment with the invoice
- Select the prepayment to apply.
- A new line is created in the invoice
- Enter the invoice number and date.
- Post the invoice.
The final step will be to pay the vendor invoice. We can check the
amount to pay in the Settle transcation form (AP > Common >
Vendors > All vendors): Amount to pay = 295,68 (Invoice with sales
tax 394, 68 – prepayment 99).