Purchase Order Prepayment in Dynamics 365 Finance and Operations

[@vinny2474]

my job depends on me learning this software, so ill be watching a lot of your videos! :) good work!!

[@mamtathakur6715]

The way you explained is simple & easy to understand. Thanks alot

[@Scott-Gaines]

You are most welcome!

[@latarao5021]

Thanks for this video it really helps.

[@caiborejon5555]

Thanks a bunch for this! VERY HELPFUL!

[@harshpavani9763]

Thanks for this video, it was to the point and very informative.

[@brintonf]

Great demo! Thanks for showing the full payment process from start to finish, but one question... When you apply the prepayment, does it reverse the posting from the prepayment ledger into the other asset/expense account of whatever item/expense is on the invoice?

[@danigarcia1209]

Someone please answer this. I am having the same question.

[@Mahaseenrecords]

@@danigarcia1209 yea.. it will be reversed automatically once the invoice is posted against that. other than it would be considered an expense in the ledger for the balance sheet.

[@AliRazaZaidi]

Amazing Sir, Your video fuel me up. I am decide to add videos on Dynamics 365 for finance and operations.

[@Scott-Gaines]

Great 👍

[@debray9572]

You're doing a great job. Keep'em coming!

[@Scott-Gaines]

Thanks, will do!

[@StrattonVA]

@@Scott-Gaines What happens if the PO is based on an estimate, but the amount changes when the final invoice/item are received. For instance, let's say I have a PO for Time & Materials. 20 hours @ $100 hours with a 50% prepayment required. If 20 hours happens, we're solid. If 22 hours happens, I know we just add a second line (no prepayment) for the balance. But what happens if it comes in at only 15 hours? I can't reopen the invoice and change the quantity to modify it DOWN.

[@ranasarkaya963]

Hello thanks for this great video i was trying to setup prepayment but i was wondering what is the difference between prepayment aplication voucher and prepayment voucher ?

[@diegoromaomanfiogozzi1837]

Thank you man!

[@cervellogar]

The system doesn't make you add an item sales tax code on the prepayment invoice?

[@sanjfernando4413]

Thanks . really good

[@yugandharkambam9616]

Hi sir, is there any possibility prepayment invoice cancellation..... Po is 100 usd and I have wrongly done prepayment of 40 usd and I invoiced 40 usd.... But actually prepayment is 20 usd ..... What is the solution?

[@CataPLC]

Hi, this could be the case in FOB purchase order, isn't it?. what happens with the inventory between the prepayment and the receiving process? Are we able to look at the inventory?, where is it?, thanks

[@Scott-Gaines]

Yes that's the exact scenario. The client I'm working with is a US customer that takes possession of the inventory when it hits the Chinese Port. A prepayment is created that updates a GL account in D365 called "On Water Inventory" this holds the value of the on the water inventory. We don't really want to show the inventory quantity on hand because they don't have physical possession of the goods yet. To see inventory quantities they just look at the PO. We've talked about creating a report that shows all the items and inventory quantities for the POs that have prepayments on them, but so far that hasn't been needed. The only GAP we've found is if the entire amount of the PO is not taken. This isn't the case with my client, but if that were the case we'd need a modification that would allow the prepayment to be taken as a lesser amount of the PO, but would send the prepayment amount to one GL and the entire amount of the PO to the on water GL account. '

[@CataPLC]

DynamicsPost My client does a 80% prepayment when the origin port and wants to have the inventory while in the sea. I assume this in not standard, isn“t it?

[@dharmaranjansahu]

IN 5:51, When you post & Validate in the same time while posting i got a error (The transactions on voucher DEMO-000160 do not balance as per 3/11/2021. (accounting currency: 9,990.00 - reporting currency: 9,990.00). can you please help me to solve this????

[@Scott-Gaines]

I've seen that error before it really doesn't have anything to do with advanced warehouse its that you have a reporting currency on your GL. Try searching "does not balance because of reporting currency" that should give you several options to try.

[@danigarcia1209]

Can someone please help me understand the posting on the GL using this method? When the initial prepayment is made, lets say 50% upfront, GL posting should be Dr Prepaid expense $XXX Cr Cash /AP $XXX What happens happens then when the remaining 50% is invoiced/paid/applied? Does the amount that was placed in a prepaid expense account above get reversed and placed into it final expense account at 100% of the invoice?

[@Aariles]

The final invoice will reverse the 50% prepayment (credit) and then you PO line item will be accounted for 100%. The prepayment line on the final invoice is always there to reverse the prepayment account, no matter the %

[@vishnusai8877]

Can you plz explain sales order prepayment too.

[@Scott-Gaines]

Yes I'll take a look at that one.