Purchase Prepayment or Advance Payment, Prepaid Vendor Order & Invoice in Business Central

💁To Process a Prepayment Order or Transaction, try to Follow these Steps:
✅(1) Post the Purchase Prepayment Invoice, then...
✅(2) Post Advance Payment (Receipt), and...
✅(3) Apply this Posted Payment Entry on the Current Purchase Order, after that Post Regular Purchase Receipts or Invoices (following the standard and old way).
✅(4) The received... Prepayment Amount should be... Amount including Tax (after Discount).
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💁Try to view, Purchases & Payables Setup (➡️Prepmt. Auto Update✅, and ➡️Check Prepmt. when Posting✅...feature), and assign (➡️Number Series, for Posting Prepayment, documents)... and General Posting Setup (for assigning Prepayment General Ledger Accounts).
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➡️Hint: Purchase Prepayment Account is treating like, Prepaid Expense, this is covered under the Current Assets (group) in the Balance Sheet (i.e., Financial Statement of every Company).
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💁Agenda of the Video▶️: If our Vendor/Supplier/Service Provider require to Receive Payment before they'll Ship the Order, we can use the Purchase Prepayment process.
▫️If you require, your Customers, to Pay before you'll Ship their Order to them, you can use the Sales Prepayment process.
We can start the Prepayment process, when we create a Purchase or Sales Order.
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▫️The Default Prepayment %tage for an item on the Order, or for the Vendor or Customer, will be included in the Prepayment Invoice.
We can also specify a Prepayment %tage to the Entire Document, enabling the "Compress Prepayment" (option).
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▫️After we create a Purchase or Sales Order, we can create a Prepayment Invoice for it.
Either use the Default %tage for each Purchase or Sales Line, or Adjust the Amount.
For Example, we specify a Total Amount for the Entire Order.
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💁Note: We'll share the "Prepayment" Purchase Order and Invoice "Setup" Part in the upcoming Video.
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