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Christian Riechert

How to record a mandatory Vendor Prepayment for a Purchase Order Dynamics NAV 2017 2018 D365

For additional support, or any assistance with your Microsoft Dynamics NAV implementation, please call our Consulting Team at Tel. (714) 901-5740 or visit our websiteCBR Technology.

Many Importers and Distributors of products in the US have to deal with Prepayment Vendor terms for their Purchase Orders to domestic or international vendors. Microsoft Dynamics NAV has a built-in feature to handle the accounting for these types of transactions. There are as follows:

  1. Mark the Vendor as Prepayment for all future PO Transactions

  2. Create a Purchase Order with an indicated Prepayment Percentage

  3. POST the Prepayment Invoice in AP Module

  4. Pay the Prepayment Invoice with the regular Payment Journal in AP

  5. Have the ability to change the PO Status to release

  6. Follow the regular Receipt and Invoice process for the PO

  7. The Prepayment which was paid in AP, will automatically be applied to PO Balance

The steps are as follows:

Prepayment-Screen1

In the Vendor Card enter the agreed upon Prepayment percentage for a given Vendor.

Prepayment-Screen2

On the Purchase Order, the Prepayment percentage will default to the percentage indicated on the Vendor Master, but can be overwritten manually on the Purchase Order.

Prepayment-Screen3.png

From the posting SUB-MENU select the POST PREPAYMENT INVOICE function to create a AP Invoice in the NAV system.

Once the invoice is posted, you can pay it with your regular AP Payment journal process.

The Purchase Order CAN NOT be received against, until the ENTIRE prepayment invoice has been paid.

If a Vendor decides to ship the product only partially, you must either pay the PO in full and can then receive any portion of the PO, or you can issue a credit memo for the entire 100% and create an additional PO for the back ordered quantity. Both the original PO and the back order PO can be 100% prepayment amount, but because you are dealing with 2 separate transactions, can only pay one portion of the entire shipment at a time.

If you made a mistake with the percentage, you must post a Prepayment CREDIT MEMO first and then you can alter the percentage on the PO itself.

For NAV Consulting or implementation assistance, please contact Tel. (714) 901-5740. 

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