Microsoft Dynamics GP – Prepayments – Transcribe2021-05-14T16:53:57-07:00

Microsoft Dynamics GP
– DEMO for Prepayments –

Welcome to Microsoft Dynamics GP

In this video, we’re going to look at pre-payments for purchase orders. From the Dynamics GP homepage, we’ll move down to the purchasing center page, and then create a standard purchase order. The process of creating the purchase order is very normal. The addition will be in the creation of the pre-payment associated with it.

In this case, we’re going to order two items from the Attractive Telephone company. 25 units of their Series 1000 Answering machine delivered to our warehouse, and 50 units of their Series 2000 Answering machine, also delivered to the main warehouse. Next, we’ll indicate that we’re going to be issuing a pre-payment to go along with this purchase order. Enter the amount of the required pre-payment. In this case, we’ll indicate that we’re going to be paying by a company credit card.

Next, we’ll print the purchase order so that it’s released and available to be fulfilled. Here you can see the details of the purchase order, two line items both being delivered to our main warehouse. When we close the purchase entry window, we’ve got our posting journals for the manual payment indicating that the payment was attached to a specific purchase order, and indicating the amount and type of payment that has been recorded.

We also get a general ledger posting journal reflecting the change in the balance sheet, indicating that there is now a pre-payment issued. The next step in the process is to record the receipt of the purchase order. In this case, we’ll record a shipment along with the invoice, so we include the vendor’s invoice number, the vendor ID, and we’ll use the “Auto-invoice” functionality of Dynamics GP to bring up the details of the purchase order. Indicate that both lines were fulfilled in full.

You’ll notice now, at the bottom of the receipt, that our pre-payment has moved forward from the purchase order and reduces the amount still owed to the vendor. This transaction is also posted to update the quantity on hand. There is still a balance due, and a normal payment cycle will issue that payment. Posting journal reflects the items received. If we now drill back on the inquiry for the vendor, we’ll enter Attractive Telephone, indicate that we want to see only the open transaction, redisplay, and scroll down to the bottom.

We find our receipt, and pull up the details. Again, you’ll see the pre-payment amount has been tracked with this purchase order and this receipt and using the blue expansion arrow, we can drill back on the details associated with that pre-payment. The “Apply” button would also indicate that the pre-payment has been applied to our original purchase order.

With Dynamics GP and the ability to process pre-payments with purchase orders, we can now more accurately follow the standard practice for company importing. Thank you very much.

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