Skip to main content

Accounting for Prepayments

When you enter a prepayment, Payables provides a default prepayment account for each Item distribution. During prepayment entry, you can override the accounts Payables provides.
Payables looks in the following order and uses the first valid prepayment account it finds: supplier site, supplier, Financials option.
However, if the prepayment is purchase order matched and if the Build Prepayment Accounts When Matching Payables option is enabled, then Payables builds each account for you and defaults the built account if it is a valid accounting combination.
When you apply the prepayment to the invoice, the system assigns the applied prepayment Item's account to the new corresponding Prepayment distribution on the invoice. You cannot override accounts on the invoice's Prepayment distributions.
Tax distributions on Prepayments and the applied invoices follow the usual tax rules. This way your taxes are always accurate for each transaction. For example, if the tax rate changes between the time of your prepayment's GL date and the time you enter the invoice, each transaction will be taxed at the appropriate rate. For special tax considerations when you use Automatic Tax Calculation

Comments

Post a Comment

Popular posts from this blog

Applying Prepayments to Invoices

You can apply the available amount of Item type distributions from a Temporary type prepayment to one or more invoices to offset the amount you pay on the invoice(s). If you entered the prepayment as a Permanent type and want to apply it, you can query the prepayment in the Invoices window and change the Prepayment Type to Temporary. If you use Automatic Offsets then your setting for the Prevent Prepayment Application Across Balancing Segments Payables option controls whether you can apply a prepayment to an invoice or expense report with a different balancing segment. Prerequisites The invoice type is Standard, Mixed, or Expense Report. Today's date is on or after the Settlement Date of the prepayment. The invoice date is on or after the date of the prepayment. The prepayment is type Temporary, fully paid, validated, not cancelled, has no active holds, and has not already been fully applied. The prepayment has the same supplier, invoice currency and payment currenc...
1 comment
Read more

Application Utilities Lookups and Application Object Library Lookups

Maintain existing and define additional Lookups for your shared Lookup types. You can define up to 250 Lookups for each Lookup type. Each Lookup has a code and a meaning. For example, Lookup type YES_NO has a code Y with meaning Yes, and a code N with a meaning No. Note: In Releases 11.0 and earlier, there were two Lookup features, Special Lookups and Common Lookups. These two features have been merged into one. The new consolidated Lookups feature has Lookups maintained in this form. If you make changes to a Lookup, users must log out then log back on before your changes take effect. Lookups Block Type Query the type of your Lookup. You can define a maximum of 250 Lookups for a single type. User Name The user name is used by loader programs. Application Query the application associated with your Lookup type. Description If you use windows specialized for a particular Lookup type, the window uses this description in the window title. Access Level The access level restricts changes that...
1 comment
Read more

Recording Price Corrections From the Invoice Workbench

Use a price correction when a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order or receipt. Payables records and updates the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed so you can track price variances. Payables also updates the amount billed on the originally matched purchase order distributions. You can record a simple price correction by entering a credit or debit memo and matching to a purchase order matched invoice. However, we recommend that you record all price corrections by matching to a purchase order or receipt, as described in this document. To record a price correction for a purchase order shipment or purchase order distribution: 1. Enter the invoice. If you are recording a price increase, enter a Standard, PO Default, or Mixed invoice. If you select PO Default, then Payables prompts you to enter the PO Number. Payables then automatically def...
Post a Comment
Read more