Some suppliers require payment for purchased products before the products are received. In this scenario, you must create prepayment vouchers to track the payments to the suppliers. You must then create a second voucher to reconcile with the received amounts. For information on the manual process, see Accounts Payable Prepayments - Purchase Order Reconciliation Process Flow.
If you create prepayment vouchers for the exact amount and quantity of the received container, shipment, or purchase orders (including appropriate additional charges and taxes), the software allows you to automatically generate and reconcile the second voucher.
Note You can use a single prepayment voucher to pay for multiple purchase orders. To automatically reconcile the prepayment, the total amount of the prepayment must equal the total amount of all the associated purchase orders.
The following process is used to automatically reconcile prepayments:
In Purchase Order Maintenance or via EDI, create purchase orders for ordered products.
If necessary, create shipments and containers for the purchase orders in Container Management and Shipment Management.
In Voucher Entry, create a prepayment voucher for the purchase orders, shipments, and/or containers. Use Voucher PO Selection to select the associated purchase orders, shipments, and/or containers. The accounts payable amount for the prepayment voucher should equal the calculated prepayment amount based on the selected purchase orders, shipments, and/or containers.
Create a payment for the prepayment voucher, and pay the supplier for the purchase order using the standard payment process. For more information on the payment process, see Accounts Payable - Purchase Order Reconciliation Process Flow.
In Receiving Entry, fully receive the product for the purchase order(s), shipment(s), and/or container(s). Both the received quantity and the total monetary amount must match the prepayment voucher.
In Supplier Prepayment Management, automatically reconcile prepayment vouchers. When you perform this step, the software generates a zero amount voucher associated with the original purchase order and the prepayment voucher, and automatically reconciles the newly created voucher. The reference numbers for created vouchers are the same as the prepayment voucher reference numbers, but with -R appended to the numbers.