• From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Topic: prepayment on items not yet purchased

Hi again, I am trying to figure the workflow on this scenario and I am not meeting with success.

I have an order from my customer for a given set of devices.  I have gotten a quote from a few vendors in order to fill the order.

I do not have sufficient money to pay the vendor, so the customer has agreed to make a partial prepayment. 

I have created the quote and sent it to the customer.  After it was approved, I created the sales order from the quote.  I have setup a deferred income account and a prepayment payment term.  In the sales order, I have set the "prepayment required" field to the value that the customer has agreed to pay. now when I go to sales=>invoice prepaid orders, I can only create an invoice for the full amount, not the agreed upon prepayment value. 

I am not really clear how to send them an invoice for the value of the partial prepayment.  Seems like I am missing a step, maybe in the delivery?  but I can't make delivery till I get the vendor invoice, and I can't get the vendor invoice before prepayment, so maybe there is another way to do this?

suggestions would be appreciated...

bobloblian's Website

  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: prepayment on items not yet purchased

I have been searching around on this today, and it seems like the crux of the problem has been raised before, and that is that you cannot create an invoice for a prepayment.  To say that another way, there is no way in FA to send a customer a document that indicates some portion of a payment is due before processing of the order begins. 

Unless someone can point out an error in this finding, then pretty much the only way to handle that is to write a handwritten invoice, and attach a scanned copy of it in the system...

bobloblian's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: prepayment on items not yet purchased

http://climbershaun.blogspot.in/2011/10/handling-upfront-payments-with.html

apmuthu's Website

  • gj6n68
  • Senior Member
  • Offline
  • From: UK, India
  • Registered: 02/14/2016
  • Posts: 81

Re: prepayment on items not yet purchased

Hello,

I get below error when I try to do delivery against sales order, which has already been allocated full payment as prepayment.

"You have to set Deferred Income Account in GL Setup to entry prepayment invoices."

May I know how did you setup this deferred account?

Thank you

bobloblian wrote:

Hi again, I am trying to figure the workflow on this scenario and I am not meeting with success.

I have an order from my customer for a given set of devices.  I have gotten a quote from a few vendors in order to fill the order.

I do not have sufficient money to pay the vendor, so the customer has agreed to make a partial prepayment. 

I have created the quote and sent it to the customer.  After it was approved, I created the sales order from the quote.  I have setup a deferred income account and a prepayment payment term.  In the sales order, I have set the "prepayment required" field to the value that the customer has agreed to pay. now when I go to sales=>invoice prepaid orders, I can only create an invoice for the full amount, not the agreed upon prepayment value. 

I am not really clear how to send them an invoice for the value of the partial prepayment.  Seems like I am missing a step, maybe in the delivery?  but I can't make delivery till I get the vendor invoice, and I can't get the vendor invoice before prepayment, so maybe there is another way to do this?

suggestions would be appreciated...