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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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