A prepayment is made when a supplier is to receive payment from a buyer before shipping goods or providing services to the buyer per the sales agreement. In Precoro, you can add prepayments to the Purchase Orders.

Prepayment process:

  • In the Purchase Order, you can select a payment term. After the PO is approved, Precoro will send an automatic notification that the PO should be prepaid to the user with a ‘Payment’ role;
  • In the POs list, you will see an info-card with a count of POs that should be prepaid;
  • The payment status of the PO will change to the ‘Prepaid’ once the prepayment is added;
  • The prepayment will be automatically applied to the next approved Invoice;
  • You can cancel a prepayment at any time at the PO level;

Q & A:

  • Who can add prepayments? - A user who has access to the PO page and a 'Payment' role;
  • When can we add the prepayment? - After the PO is approved and before the PO is fully paid;
  • Who can cancel a prepayment? - A user who has access to the PO page and a 'Payment' role;
  • Can we cancel a prepayment on the Invoice level? - Yes. But the prepayment will stay in the PO, and you will have to cancel it in the PO manually;
  • Can we add multiple prepayments? - Yes;
  • Can we add a prepayment even if we selected the 'Postpayment' term in the PO? - Yes;
  • In what currency will the prepayment be made? - In the PO currency;
  • How to see in the reports the prepaid amount? - You can see the prepaid amount in the custom report by PO.