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Estonian Dynamics Partners

Extensions for Microsoft Dynamics 365 Business Central

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Prepayment Management - User Guide

Prepayment management functionality enables the following:

Settings

To use the functionality, standard prepayment settings are required. In the General Posting Setup, the Sales Prepayment Account must be determined.

Prepayment Unrealized VAT setup

If it is preferable to declare VAT amounts from prepayment invoices after they are paid by customer, then following setup must be made.

As a first step you have to open General Ledger Setup and mark Prepayment Unrealized VAT as Yes.

As a second step you have to open VAT Posting Setup and modify necessary VAT Bus. Posting Group and VAT Product Posting Group combinations. On sleected combinations you have to define Unrealized VAT Type (for an example Percentage) and also setup Sales VAT Unreal. Account.

Use

Registration of customer-specific prepayment and issuing of a prepayment invoice

In BC, customer-specific prepayment is registered through a sales invoice. For that, a sales invoice is created for the customer, including the account from the Sales Prepayment Account column of the general posting setting in its line.

Important!


On a prepayment invoice field Customer Specific Prepayment Invoice is marked automatically in the background on posting (the value of the field is transferred to the posted invoice or posted credit memo).

Therefore following will apply:


If sales prepayment account is selected for an invoice line, BC automatically creates prepayment entries into the prepayment ledger and a prepayment invoice is printed upon printing of the posted invoice (either from the Post and Print button or from the list of posted sales invoices).

Checking of customer-specific prepayment entries

There are two options for checking of prepayment entries.

Clicking a number opens a page with entries of the customer prepayments ledger displayed

Explanations of the main fields. Explanations of the main fields.

Field Explanation
Amount Original Prepayment Amount.
Remaining Amount Unused Prepayment Amount.
Open A check mark in the field refers to an open prepayment entry, which can be used (in such an event the Remaining Amount cannot be zero).
Cust. Ledger Entry No. A reference to the Customer’s Ledger Entry number associated with the entry in the Prepayment Ledger. Prepayment Ledger.
Invoice Paid Fully Shows whether a cash receipt from the customer is registered for a prepayment entry or not. If the value is No, the Customer Ledger Entry is open, i.e. prepayment cash receipt from the customer has not yet been registered in BC. Yes marks a closed Customer Ledger Entry, referring to a registered cash receipt.

Important!


It must be noted that the lines displayed in the Prepayment Ledger are not cash receipts of customer prepayment. The value in field Invoice Paid Fully shows whether prepayment has been received from the customer. If the value is Yes, the Customer Ledger Entry is closed, i.e. prepayment cash receipt from the customer has been registered in BC. No means an open Customer Ledger Entry, referring to an unpaid invoice.


By selection action Navigate you can navigate to invoice and entries from the marked prepayment entry.

Using of prepayment

A customer prepayment can be used on a sales order and invoice by using Get Cust. Spec. Prepayment button on the order/invoice page. The page that opens shows open prepayment entries with remaining amounts, from which mark the entry you wish to use and press OK

By pressing OK, the following checks are carried out:

The following information is copied from the entry to a new document line:

Important!



Cancel a prepayment invoice

An already posted customer-specific prepayment invoice can be canceled through a sales credit memo. An invoice can be created from scratch or by using the Copy Document functionality or by using the Create Corrective Credit Memo functionality from the Posted Sales Invoices list.

On a prepayment credit memo field Customer Specific Prepayment Invoice is marked automatically in the background on posting. This determines that the number of the posted credit memo is retrieved from the number series determined in the settings of prepayment credit memo.

For the line of the credit memo, the sales prepayment account from the general posting setup, quantity 1, the amount and the prepayment entry to be cancelled in the Applied Prepayment Entry No. field shall be selected.

Important!



Cancel a sales invoice on which prepayment has been used

Cancellation takes place through a sales credit invoice or sales return order. The document can be created from scratch by using the Copy Document functionality or, in the event of a return order, the Get Posted Document Lines to Reverse… activity.

For the document line, the sales prepayment account no. determined in the general posting setup, quantity -1, and the amount are selected (copied). The Applied Prepayment Entry No. field shall be left empty.

Note!


After posting, a new prepayment ledger entry is created for the customer to be used for the new sales document.


For more information, please contact one of the partners:
http://www.dynamicspartners.ee