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
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
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