Using Prepayments in Dynamics GP 2013
Posted by Georgia Stewart on April 2, 2014
Here's a quick 'how-to' on using prepayments in Microsoft Dynamics GP 2013.
The Purchase Order Processing Setup window has a setting to allow prepayments and to assign a default prepayment posting account. You can also set up a Prepayment Password that will be required whenever a prepayment is entered on a purchase order. Note that Prepayments are not available if you have Project Accounting, Analytical Accounting, or Multi-Dimensional Analysis Registered. If you have those modules registered but are not using them, you can uncheck the box in the Registration window so that you can use the Purchase Order Prepayments.
The prepayment amount is entered on the Purchase Order entry screen. The red hash marks indicate that the prepayment amount has not been paid. Once a check is posted for the prepayment, the hash marks will no longer be shown.
When you click the arrow to the right of the Prepayment amount, you can enter the Prepayment Account. If you have marked that you allow Manual Payments, you can also select the Payment Type. If you select Manual Payment, you can select the Payment Method (check or credit card) and then enter the payment information.
The General Ledger impact for the prepayment will occur when a Payables Check batch is created and you choose to pay the prepayment, or when you close the PO window if you entered a manual payment. GP will debit the prepayment account and credit the cash account.
A separate check batch needs to be run for the Purchase Order Prepayments. When you create the check batch you need to mark the box Purchasing Prepayment Batch. The Edit Payables Check Batch window will display the vendor and the PO number that is being prepaid.
The check stub will print the PO number in the document number column. If you have more than one PO to the same vendor with prepayment amounts, the check run will automatically print one check per Purchase Order Prepayment, not one check per vendor.
The Journal Entry shows that the payment credits the cash account for the checkbook and debits the prepayment account entered on the purchase order.
When you match the invoice to the Purchase Order Receipt or create a Shipment/Invoice document in Receivings Transaction Entry, the prepayment amount is automatically assigned to the invoice document when you select the Purchase Order that was prepaid. You can enter multiple Invoice Match or Shipment/Invoice documents against the prepaid purchase order.
When you click the arrow to the right of the prepayment amount you can see the purchase orders and payables payment numbers associated with the prepayment and you can drill back to the payables payments related to the prepayment.
There is a new field PONUMBER in the PM20000 table.
Transaction Inquiry – Vendor window displays the checks that were processed for the prepayment and the invoice(s) that the prepayment applies to. One challenge is that the PO number does not display on this list and does not show if you drill back to the payment number into the Apply button.
The table that holds the prepayments and remaining balances is POP10170.