Payables provides two ways to apply prepayments to an invoice. You can do either of the following:
Create or query an invoice and apply one or more prepayments to the invoice.
Create or query the prepayment and apply it to one or more invoices.
When you select an invoice and choose the Apply/Unapply Prepayment option in the Invoice Actions window, the Apply/Unapply Prepayments window opens. It automatically displays all prepayments that have been applied to the invoice, and all available Prepayment distributions that you can apply to the invoice. Payables displays prepayment item type distributions that meet the following criteria: same supplier, and invoice currency as the invoice. The prepayment's Settlement Date is on or before today's date. The prepayment is type Temporary with a status of Available.
If you use Automatic Offsets, you can set up Intercompany Accounting in Oracle General Ledger to ensure that the prepayment application is balanced by balancing segment. For more information on applying prepayments when using automatic offsets, see: Automatic Offsets and Payment Processing. For information on setting up Intercompany Accounting, see: Intercompany Accounting.
Invoice Amount. Amount of the invoice. All amounts displayed in this window are in the invoice currency.
Invoice Amount Unpaid. Amount of the invoice that is unpaid by payments and prepayments excluding tax. You can apply remaining prepayments up to this amount If prepayment invoice has tax, then it should be applicable to the standard invoice up to the standard invoice amount excluding tax subject to available amount on prepayment devoid of tax.
If standard invoice has tax and prepayment invoice has no tax, then apply the complete prepayment amount subject to the constraint that prepayment application amount is lesser or equal to the invoice amount.
Apply. Use the Apply check box to select prepayments to apply to the invoice.
Prepayment on Invoice. (check box) Enable this check box if the invoice references a prepayment (the invoice amount has been reduced by the prepayment amount and any associated tax).
Amount To Apply. Enter the amount of the prepayment Item distribution you want to apply. This amount cannot exceed the amount of the Prepayment distribution that is unapplied. The total amount of prepayments you apply cannot exceed the unpaid amount of the invoice.
GL Date. Accounting date of the prepayment application. Payables will default the latest GL Date used on the invoice and prepayment invoice distributions. This value will be the GL Date on the Prepayment distribution that Payables creates.
Prepayment Number. Invoice number of the prepayment.
Line Num. Displays the line number.
Amount Available. Amount of the prepayment that you can apply. This is the original distribution amount minus any existing amounts applied to invoices.
Amount of Included Tax. Displays the tax amount included.
Site. Payables displays the supplier site to which the prepayment was paid.
Print. To print a Prepayment Remittance Notice for the supplier when you apply a prepayment, choose this option. The Prepayment Remittance Notice is a letter notifying the supplier that you have applied a prepayment to an outstanding invoice. Payables prompts you to enter the following information for the letter signature block: Name of Sender, Title of Sender, Phone of Sender. See: Prepayments Remittance Report.
Description. Payables displays the description of the selected distribution. This value defaults to the new Prepayment distribution, and you can modify the description in the Distributions window.
PO Num/Receipt Num. If the Prepayment distribution was purchase order matched, Payables displays the transaction to which it was matched.
For details on how Payables builds the GL accounts for matched prepayments when the Build Prepayment Accounts When Matching Payables option is enabled, see: Build Prepayment Accounts When Matching.
Invoice Overview. If you select a Prepayment record and then choose this button, Payables opens the Invoice Overview window and displays information on the prepayment.
Apply/Unapply. Choose this button to apply or unapply selected prepayment amounts. You can review the updated distributions for the invoice in the Distributions window.
This region of the window shows all prepayment amounts you have already applied to the invoice. It shows the amount applied, the GL date and tax code on the invoice Prepayment distribution, the prepayment invoice number and distribution number, and the prepayment's supplier site. It also shows the description and account description of the prepayment Item distribution, as well as the purchase order number or receipt number if the Item distribution was matched.
If you unapply a Prepayment distribution, you must unapply the full amount that you previously applied. You select the Unapply check box to identify a distribution you want to unapply.
If you select a prepayment and choose the Apply/Unapply Prepayment option in the Invoice Actions window, Payables displays invoices that meet the following criteria: same supplier and invoice currency as the prepayment. The invoice date is on or after the date of the prepayment.
If you enable Automatic Offsets and choose Balancing Segment, you can still select prepayments and apply them to your invoices. However, you can select only one invoice at a time for prepayment application. Payables automatically applies the prepayment amount across prepayment distributions, according to the balancing segments on the invoice distributions. If you have multiple balancing segments, each time you make a prepayment application, Payables applies only those prepayment distributions that share the same balancing segment. For more information on applying prepayments when using automatic offsets, see: Automatic Offsets and Payment Processing
Prepayment Amount. Amount of the prepayment in the invoice currency.
Prepayment Amount Remaining. Amount of the prepayment that is unapplied to invoices and available for application.
Apply. Use the Apply check box to select invoices to which you will apply the prepayment.
Amount To Apply. Enter the prepayment amount you want to apply. This amount cannot exceed the Invoice Amount Unpaid. The total amount of invoices you apply cannot exceed the Prepayment Amount Remaining.
GL Date. Accounting date of the prepayment application. Payables will default the latest GL Date used on the invoice and prepayment invoice distributions. This value will be the GL Date on the Prepayment distribution that Payables creates.
Invoice Number. Invoice to which you are applying the prepayment.
Amount Unpaid. Amount of the prepayment that you can apply. This is the original invoice amount minus withholding tax and any existing prepayments or payments.
Site. Invoice supplier site.
Print. To print a Prepayment Remittance Notice for the supplier when you apply a prepayment, choose this option. The Prepayment Remittance Notice is a letter notifying the supplier that you have applied a prepayment to an outstanding invoice. Payables prompts you to enter the following information for the letter signature block: Name of Sender, Title of Sender, Phone of Sender. See: Prepayments Remittance Report.
Description. Payables displays the description of the selected invoice.
This region of the window shows all invoices to which the prepayment has been applied. It shows the amount applied, the GL date and tax value on the invoice Prepayment distribution, the invoice number that the prepayment has been applied to, and the invoice supplier site. It also shows the Prepayment distribution number, description and account description of the prepayment Item distribution, as well as the purchase order number or receipt number if the Item distribution was matched.
If you unapply a Prepayment distribution, you must unapply the full amount that you previously applied. You select the Unapply check box to identify a distribution you want to unapply.
Invoice Overview. If you select an invoice record and then choose this button, Payables opens the Invoice Overview window and displays information on the invoice.
Apply/Unapply. Choose this button to apply or unapply selected prepayment amounts. You can review the updated distributions for the invoice in the Distributions window.