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.
TABLE OF CONTENTS
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?
- 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.