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Writer's pictureBenito Ramirez

Dynamics 365 Business Central Training: Prepayment Invoices

Dynamics 365 Business Central is a comprehensive business management solution, designed to integrate and streamline various business processes. One such process is the handling of prepayment purchase invoices. Prepayments are often required by vendors before they deliver goods or services. This Dynamics 365 Business Central training guide will walk you through the steps to set up and post a prepayment purchase invoice in Dynamics 365 Business Central. 


Step 1: Setting Up Prepayment Configurations 

Before creating and posting a prepayment purchase invoice, you must first set up the prepayment configurations in Dynamics 365 Business Central. 


1.1 Configure the General Posting Setup 

To set up the prepayment G/L accounts: 

  • Navigate to the General Posting Setup 

  • Enter the relevant Prepayment account in the Purch. Prepayments Account field:  

1.2 (Optional) Set Prepayment % at the Vendor Level 

To enable prepayments for specific vendors: 

  • Navigate to the Vendors list. 

  • Select the vendor you want to enable prepayments for. 

  • On the vendor card, go to the Payments FastTab. 

  • Set the Prepayment % field to the percentage of the total invoice amount that should be prepaid:  


Step 2: Creating a Prepayment Purchase Order 

With the prepayment configurations in place, you can now create a purchase order that includes a prepayment. 


2.1 Create a Purchase Order 

To create a new purchase order: 

  • Navigate to the Purchase Orders list. 

  • Select New to create a new purchase order. 

  • Enter the vendor details and the relevant purchase order information. 


2.2 Specify Prepayment Details 

To specify prepayment details on the purchase order: 

  • On the purchase order header, locate the Prepayment FastTab. 

  • Ensure that the prepayment percentage is populated automatically based on the vendor or enter it manually:  

  • Review and confirm the prepayment amount. 


2.3 Add Purchase Order Lines 

To add lines to the purchase order: 

  • Under the Lines section, add the items or services to be purchased. 

  • Ensure that the quantities, prices, and other details are accurate. 

Step 3: Posting the Prepayment Invoice 

After creating the purchase order, the next step is to post the prepayment invoice. 


3.1 Generate the Prepayment Invoice 

To generate a prepayment invoice: 

  • While in the purchase order, select Actions from the menu. 

  • Choose Posting and then Post Prepayment Invoice:  

  • Review the prepayment invoice details and confirm the amounts. 

  • Select OK to post the prepayment invoice. 


3.2 Review Posted Prepayment Invoice 

To review the posted prepayment invoice: 

  • Navigate to the Posted Purchase Invoices list. 

  • Locate and open the prepayment invoice you just posted. 

  • Ensure that all details are correct and that the prepayment is recorded properly in the G/L accounts. 


Step 4: Posting the Final Purchase Invoice 

Once the goods or services have been received, you can post the final purchase invoice. 


4.1 Receive the Goods or Services 

To receive the goods or services: 

  • Navigate to the purchase order and select Receive. 

  • Enter the received quantities and confirm receipt. 


4.2 Create and Post the Final Purchase Invoice 

To create and post the final purchase invoice: 

  • Review the final invoice details, ensuring that the prepayment amount is deducted from the total. 

  • Select Post to post the final purchase invoice.

     

4.3 Review Posted Final Purchase Invoice 

To review the posted final purchase invoice: 

  • Navigate to the Posted Purchase Invoices list. 

  • Locate and open the final purchase invoice you just posted. 

  • Verify that the invoice reflects the prepayment deduction and that all details are accurate. 


Conclusion 

Setting up and posting a prepayment purchase invoice in Dynamics 365 Business Central involves configuring prepayment settings, creating a purchase order with prepayment details, posting the prepayment invoice, and finally posting the final purchase invoice. By following these steps, you can ensure that your prepayments are recorded accurately and efficiently, simplifying your financial processes and improving vendor relationships. 

This guide provides a detailed overview of each step, helping you leverage Dynamics 365 Business Central to manage prepayments effectively. Remember to always review and confirm the details at each stage to maintain the accuracy and integrity of your financial records. Happy invoicing! 

 

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