You can enter supplier invoices where the invoice amount includes prepayments.
If you receive a supplier invoice, and the invoice amount has been reduced because of prepayments that the supplier has received, you need to indicate that the invoice amount includes one or more prepayments in one of two ways:
Quick Invoices: When you enter the invoice in the Quick Invoices window, enable the Prepayment on Invoice check box.
Invoice Workbench: When you apply a prepayment to an invoice in the Invoice Workbench, enable the Prepayment on Invoice check box in the Apply/Unapply Prepayments window.
When you indicate that the invoice amount includes one or more prepayments, the following conditions are true:
After the prepayment application, the negative distributions have the Prepayment on Invoice check box checked in the Distributions window.
Distribution Total: The Distribution total includes the Prepayment distributions and any associated tax distributions.
Amount Paid: The amount paid on the invoice does not include the prepayments that the supplier referenced on the invoice.
Because the Distribution Total includes prepayments, you need to ensure that you have applied prepayments before you submit the invoice for Invoice Validation.
Attention: Since the invoice amount includes prepayments, you should not use Distributions Sets to create your invoice distributions when using the Prepayment on Invoice feature.