Microsoft Dynamics 365 Business Central – How to Make PO Prepayments (DEMO)

Making Prepayments on Purchase Orders in Dynamics 365 Business Central

Learn how to effortlessly create prepayments on purchase orders in Dynamics 365 Business Central to streamline your procurement process.

Step 1: Prepayment Setup

Begin by navigating to the purchase order you want to create a prepayment for. In the quick tab at the bottom, find the prepayment information section and specify the prepayment amount, either as a percentage or by line.

Step 2: Generate a Prepayment Invoice

After setting the prepayment amount, create a prepayment invoice. Assign a unique invoice number to clearly indicate it’s a prepayment. Then, go to Actions, select Posting, and create a prepayment invoice. This action updates the purchase order’s status to “Pending Prepayment” and generates the prepayment invoice.

Step 3: Making Payments

Access the payment journal and choose the prepayment invoice. Apply the payment amount and details. If your vendor requires multiple prepayments, pay the agreed-upon portion now.

Step 4: Second Payment (If Needed)

For subsequent prepayments, return to the payment journal. Select the same prepayment invoice and apply the remaining payment. This step ensures the vendor releases the shipment once all prepayments are made.

Step 5: Receiving the Shipment and Invoicing

Once the vendor delivers the goods or services, update the purchase order with the actual invoice number and post it. This step finalizes the transaction, and you can proceed with receiving the goods or services and invoicing as usual.

By following these steps, you can efficiently manage prepayments on purchase orders within Dynamics 365 Business Central, ensuring a smooth procurement process.

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