Does anyone have a step-by-step to using the AP Advance Billing or AP Invoice Prepayments?
Hi Bruce,
It’s pretty simple…create your group, create a new invoice, enter your PO, invoice number and date as usual, and then enter the advanced payment amount in the ‘amount’ field on the header tab. You’ll notice a negative variance in the summary at this point. Then select ‘New Adv Bill Line’ from the drop down. On the ‘Lines’ tab, enter your PONum/Line and then again enter the advanced payment amount in the extended cost field and save. This will clear up the variance on the header and you should be able to post.
Let me know if you get stuck somewhere and need additional help.
Thanks, Ryan. Much progress.
A couple more points to clarify:
- We set up an AP Prepayment GL (00-2000-000) and assume a GL control has to be set on that account to link it to this transaction. What Control type?
Whoops. But wait, there’s more.
- Does it matter waht line you pick? Say there are dozens of low value lines and the supplier wants 30% up front. The pre-payment may be greater than the value of the line chosen. Does it matter?
A financial guru I am not, so I might not be much help beyond the actual procedure.
In GL Control Maintenance, if you select AP Account as the type, I assume your advance payment context is associated with a GL account as shown below?
If you had dozens of low value lines, and the supplier wanted 30% of each line up front, you would probably need to create an advanced billing line on your invoice for each line on your PO, making sure that the amount you entered on the header matches the total of your prepayments on each line. I’ve never attempted to prepay against a line for more than the amount due on that line…I can only assume that the system would fuss over that one.
Thanks for the clarification on the Control. The amount per line is in line with my thinking, but we have not tested yet.
Many thanks!
Nick,
This is working nicely. Thanks for the pointers. Have you had occasion to make a second progress payment against the same supplier and invoice? Does E9 stop you with a duplicate invoice warning? Haven’t gotten there yet but I can see that happening.
Regards.
I’ll assume this one is directed my way as I don’t see Nick anywhere on the thread…
So you wouldn’t use the same invoice for the second payment, you would create another invoice against the same PO lines so that the system would deduct from the total amount due on the PO. You could theoretically create as many invoices as you wanted to as you prepay against the same PO until closed.
Hope that helps!