This blog post and YouTube video has been addressed more extensively in my published book on Business Central ledgers. The book covers many, many other topics like Order To Cash, Procure To Pay, Ad-hoc Analysis.
Download pdf sample.
Businesses selling goods are sometimes asking for a deposit before they ship the merchandise to you, especially when the value of the sale is large.
Let’s assume that we, the owners of Business Central, have a large sale to a customer. We might need a deposit to ship the product to the customer.
We might also require the prepayment (deposit) be paid right away or soon, before we send the products.
Customer Prepayments
This is the process:
- create sales order
- in the Prepayment section of the sales order input the Prepayment as %
- if the prepayment is requested right away, manipulate Payment Method Code on the Invoicing tab to be CASH or something similar, important is that foir instant cash in your bank you need Bal. Account No. This will trigger the payment of the Prepayment Invoice to be posted at the same time with the Prepayment Invoice
- Post Prepayment Invoice. If you used a CASH payment method code, a Payment will be automatically generated, applied to the prepayment invoice and posted.
- Post Sales Order
- Generate Payment for the remaining amount of the invoice, apply it to the order and post it
Let’s see that in a quick video:
This is what happened accounting-wise, but check the video to hear the explanations!
Now, go-do a sales order with prepayments!
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