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Entering Prepayments

You can enter a Prepayment type invoice only in the Invoices window. You cannot enter a Prepayment type invoice in the Invoice Gateway.
Prerequisites
(Optional) Enter a prepayment account at the supplier site.
(Optional) Enable the Build Prepayment Accounts When Matching Payables option if you want Payables to build GL accounts for prepayment Item distributions when you match to a purchase order or receipt. (Optional) Set a default value for the prepayment payment terms in the Payables Options window. If you do not enter a default value, payment terms default from the supplier site.
To enter a prepayment:
1. In the Invoices window select Prepayment as the invoice type and enter all basic invoice information. Before entering distributions, proceed with the next three steps.
2. Select a Prepayment Type:
Temporary. You can apply this prepayment to invoices after you validate and pay it, and after the settlement date.
Permanent. You cannot apply this prepayment to invoices.
3. The Settlement Date that defaults here is calculated based on your Prepayment Settlement Days Payables option. You can update this value. You cannot apply a Temporary prepayment to invoices or expense reports before the settlement date.
4. If you want to restrict the prepayment's application to invoices matched to a particular purchase order, enter a value for Prepayment PO Number.
5. Enter the distributions. You can enter distributions manually or automatically with Distribution Sets, purchase order matching, allocation, and automatic tax calculation. You cannot manually update distribution line numbers for Prepayment type invoices. If you do not enter distributions automatically, then when you navigate to the Distributions window and enter Item distributions, Payables defaults the prepayment account from the supplier site.
6. Review or modify the scheduled payments.
7. Validate the prepayment as you would any other invoice8. Save your work. The prepayment is ready for payment. You must fully pay prepayments. After you fully pay a Temporary prepayment, it is available to be applied.

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