If you mistakenly apply a prepayment to an invoice, you can unapply it. It is then available to apply to another invoice. When you unapply a prepayment, you must unapply the full prepaid amount. Payables increases the amount available for the prepayment by the unapplied amount. Payables creates a positive amount Prepayment distribution on the invoice, with the same attributes as the existing Prepayment distribution it is reversing. Payables then updates the status of the invoice to unpaid or partially paid.

You can review in the Distributions window the Prepayment distributions applied to an invoice.

You unapply prepayments in the Invoice Workbench. However, if the prepayment was applied before your Payables system was upgraded to Release 11i, you unapply the prepayment by submitting the Unapply Preupgrade Prepayment program from the Submit Request window.

To unapply a prepayment in the Invoice Workbench:

1. In the Invoice Workbench query the invoice or the prepayment.

2. Choose Actions and select the Apply/Unapply Prepayment check box. Choose OK.

   Payables displays all existing prepayment applications. Select each Prepayment distribution you want to unapply by checking the Unapply check box. You cannot modify the prepayment amount because you must unapply the complete amount that you previously applied.

   If you want to limit available prepayment choices, enter a query or use the Find Prepayments to Apply window by choosing Find from the View window. If you want to see more information on a prepayment or an invoice, select it and choose Invoice Overview.

   If you want to print a Prepayment Remittance Notice for the supplier, select the Print check box.

3. Choose the Apply/Unapply button to unapply the prepayment amount(s) and save your work.

4. If you had manually adjusted any amounts on the invoice to account for tax, then undo those adjustments.

Unapplying Prepayments Applied Before Upgrading to Release 11i

If you applied a prepayment to an invoice before upgrading to 11i, you cannot unapply the prepayment in the Invoice Workbench. To unapply this prepayment, you must submit the Unapply Preupgrade Prepayment program from the Submit Request window. You cannot unapply more than one prepayment application at a time.

Note that accounting for this is different from the procedure described for prepayment unapplication event. Because prepayments were different before Release 11i, accounting for this unapplication will be a payment adjustment on the invoice and an invoice adjustment for the prepayment.

Prerequisite

• The prepayment was applied before Payables was upgraded to Release 11i.

To unapply a prepayment by submitting the Unapply Preupgrade Prepayment program:

1. In the Name field of the Submit Request window, choose Unapply Preupgrade Prepayment. The Parameters window opens.

2. Enter the report parameters to specify the prepayment you want to unapply:

   • Supplier Name.

   • Invoice Number. The list of values includes only invoices that had prepayment applications that were applied before the upgrade.

   • Prepayment Number. The list of values shows only prepayments that were applied to the invoice number you entered in the Invoice Number parameter.

   • GL Date. The accounting date on which the unapplication is recorded. This should be in an open or future period.

3. In the Submit Request window, choose the Submit button to unapply the prepayment.