PO Prepayments in Dynamics GP

How do you handle purchase order prepayments in GP? Well, very easy: Dynamics GP allows the user to specify a prepayment amount directly in the purchase order entry screen, and then provides a simple workflow for the payment to be issued through the normal vendor check runs process. Let's see …

First of all, you need to activate and configure the prepayment functionality. This is done in the Purchase Order Processing Setup window. This setup allows to specify various options, the most important of which is the prepayment suspense account to be used to offset the bank when issuing the vendor prepayment.

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Once activated, we can begin entering prepayments when needed. When creating a purchase order, the user can now specify a prepayment amount in the designated prepayment field; the user can also open the Purchasing Prepayment Entry window to specify other options depending on the setup options chosen (for this example, we are using a check payment).

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When printing the PO, the prepayment amount appears in the document as shown here:

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The next step in the process is to actually issue the payment. Part of the beauty of the prepayment process is that it is seamlessly integrated to the normal check selection and printing from payables management, so the learning curve is non-existent. The prepayment amounts are selected in the same way any other invoice payments are selected; the user simply needs to specify that is is looking for prepayment amounts when creating the check batch as shown here:

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When building the checks batch, Dynamics GP will identify and select purchase order prepayments, as shown here:

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The rest of the check printing process is the standard one in payables. After that is done, the next step is the receiving of the purchase order, which will reflect the original prepayment automatically as shown below:

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As you can see managing purchase order prepayments is a very well integrated process, integrated seamlessly with the check printing and PO receivings in a way that it is simple to learn and use.

So, how do you handle prepayments in Dynamics GP? Well, very easily!