Trade in Microsoft Dynamics NAV-2017 - Locus IT Services

Trade in Microsoft Dynamics NAV

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Lesson 6: Vendor Prepayments

Vendor Prepayments

Vendor Prepayments : Some vendors might insist that you pay part of the total price of their order, specified as an amount or a percentage, before the order is shipped.

In Microsoft Dynamics NAV, the functionality that is required to manage these requests and payments is known as vendor prepayments.

This lesson deals only with the prepayment functionality that is used directly by purchasing agents. For a better understanding of prepayments and for information about prepayment setup, refer to the Finance Essentials in Microsoft Dynamics NAV course.

Prepayment Process Flow

For prepayment purchase orders, the typical process flow consists of the following steps.

  1. Create a purchase order with a prepayment requirement.
  2. Receive the prepayment invoice from the vendor and enter it into the system. Or, create and post a prepayment invoice for the prepayment amount.
  3. Send the prepayment amount to the vendor.
  4. Receive the order from the vendor.
  5. Receive the invoice from the vendor and enter it into the system. Verify that it is for the total purchase order amount minus the prepayment amount.
  6. Send the payment to the vendor and post the payment to the purchase order.

Demonstration Steps

To assign an overall prepayment percentage on a purchase order, follow these steps.

  1. In the Search box, enter “purchase orders”, and then select the related link.
  2. On the Home tab, click New and then press Enter.
  3. On the General FastTab, in the Buy-from Vendor No. field, enter “44127904”.
  4. On the Lines FastTab, add the Prepayment % and Line Amount Excl. VAT to the lines by using the Choose Columns function.
  5. In the Type field, select Item.
  6. In the field, enter “1924-W”.
  7. In the Quantity field, type “100”.
  8. Expand the Prepayment
  9. In the Prepayment % field, type “5” and then press Enter or Tab.
  10. Click Yes to update the lines. On the purchase line, the Prepayment % and Line Amount Excl. VAT fields change to reflect the prepayment percentage and calculated amount.
  11. Close the purchase order.

To set up the prepayment percent on the vendor card, follow these steps.

  1. In the Search box, enter “vendors”, and then select the related link.
  2. Open the vendor card for vendor 44127904.
  3. Expand the Invoicing
  4. In the Prepayment % field, type “5”.
  5. Click OK to close the vendor card.

Demonstration:  Create a Purchase Order with a Prepayment Amount

Scenario: Vendor 44127904 requires a prepayment of 1000.00 LCY on all orders over 15,000.00 LCY, if the 1000.00 LCY amount does not meet the five percent requirement.

Alicia creates an order to vendor 44127904 for 15 units of item 1996-S and 10 units of 1992-W. The total order is over 15,000.00 LCY. However, the five percent prepayment calculates to less than 1,000.00 LCY. Therefore, Alicia must set the prepayment amount to 1,000.00 LCY, and by doing this, it will override the automatic calculation.

Demonstration Steps

To assign an overall prepayment amount on a purchase order, follow these steps.

  1. In the Search box, enter “purchase orders”, and then select the related link.
  2. On the Home tab, click New and then press Enter.
  3. On the General FastTab, in the Buy-from Vendor No. field, enter “44127904”.
  4. On the Lines FastTab, in the Type field, select Item.
  5. In the field, enter “1996-S”.
  6. In the Quantity field, type “15”.
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