A prepayment is made when a supplier receives 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 could 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, and it will be reflected in the related invoice too.

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.