A/P-A/R accounting > Invoicing > Prepayment invoice 

Use this function to create and manage the sequence of partial invoices, payments, and the final invoice. You can generate prepayment invoices and dedicated journal entries linked to the manually created customer order. Taxes are deferred on the partial invoices and posted to the tax due account with the final payment.

The prepayment and final invoices are created in the Customer BP invoices function where you need to post payments as for a standard invoice.

Process overview

  • Create the prepayment contract and amounts.
  • Generate prepayment invoices according to contract and the related automatic journals.
    • The first prepayment invoice defaults to the contract date, but you can modify it.
    • Each prepayment invoice can be a partial payment, no payment, or full payment.
    • When a prepayment invoice is generated, the tax amount due posts to a control account until the invoice is paid. At that time, the tax amount posts to the normal account.
  • Generate the final invoice and postings according the automatic journals.
  • You need to post the payment following the standard payment posting process in the Payment/receipt entry or Bank posting functions. Posting the payment transfers the amounts to the normal accounts for revenue and taxes.

You can enter multiple prepayment invoice lines at once, but you can only generate one invoice at a time. Invoices are generated when you click Prepayment invoice. When a payment is posted in the Payment/receipt entry function, you can generate the subsequent invoice.

If you need to reverse a prepayment invoice, you must do this in the Customer BP invoice function. Select Invoice > Credit memo in the Action panel. In this function, the contract number displays as the source document, not the prepayment invoice number.

When you generate the final invoice, the credit memo is not considered.


For the tax amounts due to post to the correct interim account, you need to enter that information in the TRPAYJ - Payment transfer journal and TRFINJ - Final invoice transfer journal parameters (TRS chapter, PIM group).

    Prerequisites

    SEEREFERTTO Refer to documentation Implementation

    Screen management

    Header

    Fields

    The following fields are present on this tab :

    This field displays the contract number when you create a new contract.

    The sequence number generated is based on the Prepayment invoice (PREPI) Sequence number assignment.

    • Contract date (field PCNTDAT)

    This field displays the contract creation date, which defaults to the current date. You can modify this date.

    Enter or select a site for the contract.

    • Status (field STAT)

    This field displays the contract status.

    Entered: The contract was created but no prepayment invoices have been generated.
    In progress: At least one prepayment invoice has been generated, but not the final invoice.
    Closed: The final invoice was generated and posted.

    Close

     

    Tab Common rules

    Fields

    The following fields are present on this tab :

    • Source (field PCNTORI)

    This field displays the contract source and defaults to Manual.

    • Customer/Supplier (field PCNTTYP)

    This field displays the business partner type: Customer.

    Enter or select the customer code for the contract.

    • Control (field PPBPACC)

    This field displays the short code for the default control account for the customer, but you can change it.

    • Account (field SACACC)

    This field displays the control account number linked to the short code entered in the Control field and cannot be modified.

    Close

     

    Tab Contract info

    Fields

    The following fields are present on this tab :

    Block number 1

    • Final date (field FNLDAT)

    This field displays the contract end date and defaults to the current date, but it can be modified.

    • Prepayment deduction type (field DEDTYP)

    This field displays the deduction type and cannot be modified.

    This field displays the currency in the main general ledger for the company. You can change the currency.

    • Rate (field RAT1)

    This field displays the currency rate.

    • Applicable exchange rate (field RATAPL)

    Select the exchange rate rule for the prepayment and final invoices:

    Contract rule: This option applies the exchange rate for the contract currency.

    Invoice rule: This option applies the exchange rate used for company invoices.

    • Final invoice control (field FNLBPACC)

    Enter or select the control account code for the final invoice.

    • Account (field FNLSACACC)

    This field displays the control account number linked to the short code entered in the Final invoice control field and cannot be modified.

    • Amount - tax (field PCNTAMTNOT)

    Enter the full contract amount due in the contract currency not including tax.

    Enter the tax rate code for the contract. The tax code must be linked to the company legislation or to a company with no legislation assigned.

    • Amount + tax (field PCNTAMTATI)

    This field displays the contract amount due including tax based on the amount due and the tax rate.

    This field defaults to the payment terms for the customer, but you can change the terms for the contract.

    This field displays the tax rule for the customer, but you can change it.

    This field displays the rules defined for the customer, but you can modify for the contract.

    • Description (field PCNTDESC)

    You can use this field to enter a contract description.

    • Sales order (field SOHNUM)

     

    • Sales order line (field SOHLIN)

     

    Grid Analytical

    You can enter a dimension type based on the default dimension types.

     

    Tab Prepayment invoices

    Presentation

    Creating invoices

    You can enter one or multiple prepayment invoices, but you can only generate one at a time by clicking Prepayment invoice. When an invoice is posted, you can generate the next one.

    The first invoice defaults to the contract date, but you can change it. Each subsequent invoice must have a date after the preceding invoice. They type of invoice is determined by the PREPAYC - Customer prepayment invoice parameter (TRS chapter, PIM group) value.

    For each invoice, enter a prepayment percentage and the account. The Invoice amount – tax and Invoice amount + taxfields are automatically calculated based on the percentage. Of course, the total amount of prepayment invoices cannot exceed the contract amount.

    Note

    If a tax code is specified for the contract, only accounts subject to tax and for the legislation are available for selection.

    After you create a prepayment invoice you cannot modify it. Deleting a prepayment invoice is controlled by the rules for the legislation.

    If you need to reverse a prepayment invoice, this must be done in the Customer BP invoice function. Select Invoice > Credit memo in the Action panel. In this function, the contract number displays as the source document, not the prepayment invoice number.

    When you generate the final invoice, the credit memo is not considered.

    Paying invoices

    When a payment linked to prepayment invoice is posted in the Payments/receipt entry function (GESPAY) or in the Bank posting function (REMBAN), the standard entry is performed according to the payment type.

    Then, for each payment line linked to a prepayment invoice, the paid amount is split into net and tax amounts and saved in a table. The paid amounts are updated in Prepayment invoices grid.

    The PRPAY automatic journal is used to comply with the VAT posting on payment requirement and is defined in the TRPAYJ – Prepayment transfer journal parameter (TRS chapter, PIM group).

    Note

    This automatic journal is triggered if:

    • The partial invoice is connected to a contract that is in progress, meaning a final invoice has not been generated.
    • The PRPAY automatic journal is active for the legislation.

    Close

     

    Fields

    The following fields are present on this tab :

    Grid

    • Invoice no. (field INVNUM)

    When you generate the prepayment invoice, this field displays the invoice number and cannot be modified.

    • Credit memo no. (field CREMEMNUM)

    If you reversed the invoice on the line using the Invoice > Credit memo action in Customer BP invoices, the credit memo number displays here and cannot be modified.

    • Invoice date (field INVDAT)

    Enter the invoice date. For the first prepayment invoice, the contract date displays by default. For additional invoices, this date must be after the preceding invoice date.

    • Prepayment percentage (field PPCT)

    Enter the percentage of the contract total due for this prepayment invoice. Based on this value, the Invoice amount -tax and Invoice amount +tax values are automatically calculated.

    • Invoice amount -tax (field AMTNOTLIN)

    This value is automatically calculated based on the prepayment percentage, the contract amount, and the tax rate.

    • Invoice amount +tax (field AMTATILIN)

     

    Enter the account for the invoice.

    • Paid amount -tax (field INVAMTNOT)

    The value is automatically calculated when you post the payment for the invoice.

    • Paid tax amount (field INVAMTTAX)

     

    Close

     

    Action icon

    Invoice

    Click this action to jump to the customer BP invoice on the line.

     

    Close

     

    Tab Final invoices

    Presentation

    Creating the final invoice

    To create the final invoice, prepayment invoice(s) must exist and be posted. When you enter the final invoice date and account, the Final invoice button is active.

    When you click Final invoice:

    The postings according to the BPCFI automatic journal, as defining in the TRFINJ – Final invoice transfer journalparameter (TRS chapter, PIM group) are executed for each prepayment invoice. The log file displays the journal entries and amounts are transferred from the prepayment invoice account to the final invoice account.

    Note

    This step is executed only if the BPCFI automatic journal is active for the legislation.

    The final invoice is created in the Customer BP invoices function. The number is displayed in the Final invoice grid. The invoice type is defined in the PAYFINC- Final customer invoice parameter (TRS chapter, PIM group).

    Note

    The final invoice is not yet posted; only prepayment amounts have been transferred. You need to post the final invoice using the standard procedure in the Customer BP invoices function.

    The contract status is now closed.

    Close

     

    Fields

    The following fields are present on this tab :

    Grid

    • Final invoice no. (field INVNUMF)

    When you generate the final invoice, the invoice number automatically displays.

    • Final invoice date (field INVDATF)

    Enter the date for the final invoice.

    • Invoice amount -tax (field AMTNOTLINF)

    This value is automatically calculated based on the remaining contract balance, the contract amount, and the tax rate.

    • Invoice amount +tax (field AMTATILINF)

     

    Enter the account for the final invoice.

    • Paid amount -tax (field INVAMTNOTF)

    This value is automatically calculated based on the remaining contract balance, the contract amount, and the tax rate.

    • Paid tax amount (field INVAMTATIF)

     

    Close

     

    Action icon

    Invoice

    Click this action to jump to the customer BP invoice on the line.

    Invoice

     

    Close

     

    Reports

    By default, the following reports are associated with this function :

     BPCINVFIN : Final invoice

     BPCINVPRE : Prepayment invoice

    This can be changed using a different setup.

    Specific actions

    This action is active when you enter prepayment invoice details in the Prepayment invoices grid.

    Click this action to generate the invoice. You can only generate one invoice at a time. When an invoice amount is posted, you can generate the next one in the grid.

    To create a final invoice, at least one prepayment invoice must exist and it must be posted.

    This action is active when you enter details in the Final invoice grid.
    When you click this action, the final invoice is created in the Customer BP invoice function, where the final posting is performed.

    Error messages

    The only error messages are the generic ones.

    Tables used

    SEEREFERTTO Refer to documentation Implementation