๐To Process a Prepayment Order or Transaction, try to Follow these Steps: <br />โ (1) Post the Purchase Prepayment Invoice, then...<br />โ (2) Post Advance Payment (Receipt), and... <br />โ (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).<br />---<br />โก๏ธHint: 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).<br />----------<br />๐Agenda 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.<br />โซ๏ธIf you require, your Customers, to Pay before you'll Ship their Order to them, you can use the Sales Prepayment process.<br />We can start the Prepayment process, when we create a Purchase or Sales Order. <br />---<br />โซ๏ธThe Default Prepayment %tage for an item on the Order, or for the Vendor or Customer, will be included in the Prepayment Invoice. <br />We can also specify a Prepayment %tage to the Entire Document, enabling the "Compress Prepayment" (option).<br />---<br />โซ๏ธAfter we create a Purchase or Sales Order, we can create a Prepayment Invoice for it. <br />Either use the Default %tage for each Purchase or Sales Line, or Adjust the Amount. <br />For Example, we specify a Total Amount for the Entire Order.<br />-----------<br />๐Note: We'll share the "Prepayment" Purchase Order and Invoice "Setup" Part in the upcoming Video
