How to configure vendor prepayments in Microsoft dynamics 365 F&O

How to configure vendor prepayments in Microsoft dynamics 365 F&O



Prepayments are amounts paid for by a business in advance of the goods or services being received later. Any payment made in advance can be considered a prepayment. For comprehensive details regarding prepayments, I strongly recommend referring to the official Microsoft documentation.

https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/prepayments-invoices-vs-prepayments

We have two distinct options for making vendor prepayments.

Vendor Invoice

Directly from Purchase Order

Vendor Invoice

Setup the prepayment posting profiles.


Specify the prepayment posting profiles in the accounts payable parameters.


Now create a vendor payment journal against a vendor invoice.


Post the payment journal and check the voucher and related voucher.


Directly from Purchase Order

Setup the prepayment posting profile in the Inventory management module.


Create a purchase order and apply the prepayment.


Generate a prepayment invoice and post it.


Check the voucher.


Now post the original invoice and apply the prepayment.



Waqas Ahmad

Sr. Technical Consultant MS Dynamics AX/365 Finance and Operations

1 年

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