NAV - How to use Purchase Prepayments

• Purchases & Payables Setup - Define separate number series for posted prepayment invoices and credit notes
• Define Prepayment Account on Gen. Posting Setup
• Setup Gen Prod. Posting group on Prepayment GL account or you get an error when posting the purchase order
• Setup Tax Business Posting Group on Prepayment GL account if you want the prepayment to calculate Tax 
• Setup Prepayment % on Vendor
• Do PO for Vendor
• Confirm prepayment % on each line
• Post Prepayment Invoice (Needs a vendor invoice number)
• Pay prepayment invoice
• Receive and Invoice PO
• Invoice automatically deducts prepaid amount from balance
• Pay balance of invoice

Warnings

• When posting the Purchase Order to generate the second invoice, it will throw an error about the Vendor Invoice number. I recommend appending an R onto the end of the Vendor invoice number to indicate this invoice represents the received goods
• Eg. Prepayment Vendor Invoice No was 2005
• After receiving, change to 2005R, then post

Other Uses

• This method can be used to track Goods in transit values before goods are received by setting the prepayment account to your purchases in transit account
• Disable the "Compress Prepayment" option to get detailed lines on the prepayment invoice
• Modify T38 Purchase Header to set default value for Compress Prepayment Initvalue = No
• Prepayment invoice does not have correct qty or unit price, C444,T461 should be modified to include these fields in the buildbuffer