You can apply the available amount of Item type distributions from a Temporary type prepayment to one or more invoices to offset the amount you pay on the invoice(s). If you entered the prepayment as a Permanent type and want to apply it, you can query the prepayment in the Invoices window and change the Prepayment Type to Temporary.
If you use Automatic Offsets then your setting for the Prevent Prepayment Application Across Balancing Segments Payables option controls whether you can apply a prepayment to an invoice or expense report with a different balancing segment.
Prerequisites
The invoice type is Standard, Mixed, or Expense Report.
Today's date is on or after the Settlement Date of the prepayment.
The prepayment application GL date must be on or after the latest GL Date used on both the Prepayment and Standard invoice distributions.
The prepayment is type Temporary, fully paid, validated, not cancelled, has no active holds, and has not already been fully applied.
The prepayment has the same supplier, invoice currency and payment currency as the invoice.
If the prepayment has a value in the Prepayment PO Number field, then the invoice must be matched to the same purchase order.
You can apply a prepayment in the following ways:
ENCUMBRANCE: If you use encumbrance accounting, you must enter a GL date in a period that is within the latest encumbrance year.
When you apply a prepayment to an invoice, you can see all available prepayment Item distributions for the same supplier in the Apply/Unapply Prepayments window. You can partially apply a Prepayment distribution by applying only a portion of its available amount.
To apply a prepayment, you can either create or query the prepayment and then select the invoice to which the prepayment will be applied, or you can create or query the invoice and then select the Prepayment distributions you want to apply. If you want to apply specific Prepayment Item distributions to the invoice, then you must query the invoice and apply the prepayment to the invoice. Otherwise, Payables will apply the amount of the application across the available Prepayment Item distributions, starting with the first Prepayment Item distribution, up to the application amount.
When you apply a prepayment, you can print a Prepayment Remittance Notice, which you can send to the supplier. This notice states that a prepayment has been applied to an invoice and this may result in a decreased payment or nonpayment of the invoice.
To apply a prepayment to an invoice in the Invoice Workbench:
In the Invoices window, query either the prepayment or the invoice to which you want to apply it.
Choose the Actions button and select the Apply/Unapply Prepayment check box. Choose OK. The Apply/Unapply Prepayments window opens. This window shows different information depending on what you queried, an invoice or a prepayment. For details on any field, see: Apply/Unapply Prepayments Window Reference.
If you initially queried a prepayment, Payables displays all invoices in the apply prepayments window that are not fully paid and to which the prepayment can be applied. If you want to limit available choices, enter a query or use the Find Invoices to Apply window by choosing Find from the View menu.
Check the Apply check box for each Prepayment distribution you want to apply to the invoice.
If the invoice references a prepayment, check the Prepayment on Invoice check box for each prepayment distribution that reduced the amount of the invoice.
Enter the amount to apply for each prepayment distribution.
Optionally change the GL Date, which is the accounting date for the new Prepayment distributions that Payables creates when you apply a prepayment. This date must be after the latest accounting date on any distribution for either prepayment or invoice and must be in an open period. If you want to see more information on an invoice, select it and choose the Invoice Overview button.
If you initially queried an invoice, Payables displays all validated and paid Prepayment distributions in the Apply Prepayments window that you can apply to the invoice. If you want to limit available choices, enter a query or use the Find Prepayments to Apply window by choosing Find from the View menu.
Check the Apply check box for each Prepayment distribution you want to apply to the invoice. Enter the amount to apply for each prepayment. Optionally change the GL Date, which is the accounting date for the new Prepayment distributions that Payables creates when you apply a prepayment. If you want to see more information on a prepayment select it and choose Invoice Overview.
If you want to print a Prepayment Remittance Notice for the supplier, select the Print check box.
Choose the Apply/Unapply button to apply the prepayment amounts you specified and to save your work.
Review the new Prepayment distributions for the invoice in the Distributions window. On the Prepayment distributions you can adjust the values in the description fields.
Save any changes and validate the invoice. Any unpaid amount remaining on the invoice is ready for payment.
For Quick Invoices, you specify the prepayment information when you enter the invoice record. During import Payables applies the prepayment. You can also apply prepayments to invoices in the Invoice Workbench after you import them.
Note that for Quick Invoices invoice records Payables applies the prepayment during import, so the available prepayment amount is available to apply to other invoices until import.
You can apply a specific prepayment or multiple prepayments to an invoice. If you enter only a prepayment amount and do not identify a specific prepayment, Payables applies available prepayments for that supplier, in order of oldest prepayment to the newest, up to the prepayment amount. You can specify the first prepayment to apply. If the prepayment amount you enter exceeds the available amount on the specified prepayment, Payables then applies other available prepayments, in order of oldest to newest, up to the remaining prepayment amount.
When you enter an invoice record in the Quick Invoices window, Payables does not notify you if you have available prepayments for the same supplier. You can submit the Prepayments Status Report to get the prepayment details you need to successfully apply the prepayment.
You can apply one or all prepayment Item distributions. If you do not specify a value for Prepayment Distribution, Payables applies the prepayment amount across all available prepayment Item distributions in chronological order, starting with the first prepayment Item distribution, up to the prepayment amount. You cannot apply more than the total amount of available prepayment Item distributions, and you cannot apply more than the total amount of the Standard invoice you are entering.
Additional Prerequisite for Quick Invoices
Get up-to-date prepayment information from the Prepayments Status Report. See: Prepayments Status Report.
To apply a prepayment to an invoice in the Quick Invoices window:
In the Quick Invoices window, enter a Standard type invoice record.
Enter the following fields to apply a prepayment to the invoice during import.
Prepayment Number: Invoice number of the prepayment.
Prepayment Distribution: Distribution number of the prepayment Item distribution you want to apply. Leave blank to prorate the amount across all available prepayment Item distributions.
Prepay Apply Amt: Amount of the prepayment you want to apply.
Prepayment GL Date: Accounting date for the prepayment application. This will be the GL Date on the Prepayment distribution that import creates for the invoice.
If the supplier invoice references the prepayment, then enable the Prepayment on Invoice check box.
Submit Payables Open Interface Import to import the invoice record. Payables applies the prepayment amount to the invoice during import.
View the new distributions for the Standard invoice in the Distributions window. On the Prepayment distributions you can adjust the value in the Description field.
Save any changes and validate the invoice. Any remaining unpaid amount on the invoice is ready for payment.