Prepayments for Accounts Payable in Microsoft Dynamics NAV: Part III

In the previous installments (Part I and Part II), we discussed setting up the Vendor, creating the Purchase Order, making payment and discussed the impact to warehousing. For the final installment, we’ll walk through the final step for Prepayment processing.

Once the inventory has been received, the final step to clear the prepayment out of the Prepayment account (13510). To do this, a final Purchase Invoice must be processed, even if the prepayment required was 100% of the total. There are two ways to process a purchase invoice. Below, we’ll walk through the process to get receipt lines from the purchase invoice.

Once the header has been created, go to the Lines fast tab. Select Functions \ Get Receipt Lines. A box will open with any receipts open for the Vendor. The Purchase Order number will not show directly on the Get Receipt Lines page, but by looking at the drop-down box in the Document No. field, additional information such as the PO number is available to view. Select the lines to bring into the Purchase Invoice.

When the receipt lines are pulled into the Purchase Invoice, the corresponding Receipt No. will be brought in the preceding line as a description. At this point, there is no indication that the prepayment will be deducted. To verify this, look at the Preview Posting option on the Action ribbon.

Once posted, the prepayment line can be seen in the Posted Purchase Invoice, as well as the Prepayment Account.

The prepayment fields on the Purchase Order is updated through each step of the process. Below, line one shows that the item has been received and final payment made. Line two indicates the prepayment has been made and will be deducted when the next Purchase Invoice is processed.

They are not without some headaches, though. Occasionally, glitches in the process do occur. Despite that, there is great functionality that can be gained with by prepayments in NAV, which can provide a way to easily track and systematically manage those Vendors that require prepayment for ordering purposes.