How to Add Prepayments to the Purchase Orders

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 Purchase Orders.


Prepayment Process Functionality

  • In the Purchase Order, you can select a payment term:

  • After the PO is approved, Precoro will send an automatic notification to the user with the “Payment” role that the PO should be prepaid:
  • In the PO list, you will see an info card with a number of POs that can be prepaid:

  • Once the prepayment is added, the PO payment status will change to Prepaid:

  • 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:

Frequently Asked Questions

  • Who can add prepayments?
Any user with the “Payment” role and access to the PO page.
  • When can we add the prepayment?

After the PO is approved and before the PO is fully paid.

  • Who can cancel a prepayment?

Any user with the “Payment” role and access to the PO page.

  • Can we cancel a prepayment on the Invoice level?

Yes, you can. However, the prepayment will stay in the PO, and you will have to cancel it in the PO manually.

  • Can we add multiple prepayments?

Yes, you can.

  • Can we add a prepayment even if we selected the “Postpayment” term in the PO?

Yes, you can.

  • In what currency will the prepayment be made?

In the PO currency.

  • How do we see the prepaid amount in the reports?

You can see the prepaid amount in the custom report by PO.