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Prepayment in Accounts Payable document

Prepayment is an upcoming payment that is paid in advance to vendors.

Here I’m going to describe two simplest ways of creating prepayments in Acumatica:

  1. Standard way
  2. Simplified way

Creating Prepayments in the Standard Way :

  • On the Bills and Adjustments form, select the document type as Prepayment and enter a vendor prepayment request. When we save the prepayment, the system assigns it a reference number. we cannot apply or withhold taxes on prepayments, but we can add tax amounts to the prepayment amount for easier calculations.
  • Click on Release and release the prepayment. A prepayment request, when released, doesn’t generate any transactions.
  • We pay the prepayment by creating an Accounts Payable check, by using the Checks and Payments form.
  • After releasing the Accounts Payable check. , the system changes the status of this check to Closed and changes the status of the original prepayment to Open, so that we can apply this prepayment to bills and credit adjustments.

Creating Prepayments in the Simplified Way:

  • We can create a prepayment more simply, by using the Checks and Payments form. Just open the Checks and Payments form then select the type as Prepayment and apply the document. Release it.


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Release of Prepayment in Accounts Receivable document

Hi All,

I want to share an example how we can applied  and  release a prepayment in Accounts Receivable document. We can applied it either fully or partially depends on our company scenario or on customers demand.

So lets start it:

Create a Sales Order > Confirm the Shipment > Create the Invoice and release it.


Then goto Payments and Applications screen > select the Prepayment document type from the drop down. (See in attachment) > on the Documents to Apply tab of the Payments and Applications form select the Invoice  reference #  for which you want to do the prepayment .

If you want to do full payment as prepayment then leave the Amount Paid field as it is or for Partial prepayment decrease the Amount paid > save  and release it.



Comment below if you have any Questions . Thanks for reading.