Skip to main content

Prepayment

Prepayment

Overview
A prepayment is a type of invoice you enter for an advance payment (deposit) to a supplier or an employee. For example, you may need to pay a deposit on a lease, or you may need to pay an employee an advance for travel expenses. Creating a prepayment is very similar to creating a regular invoice. Use the Prepayment Status report to review unapplied payments or unpaid or partially paid invoices for suppliers/employees.

Pre-requisites
1. Prepayment account at the Supplier Site has been setup.
2. Default prepayment payment term has been setup.


Process Flowchart
(For Clear View of the Image double click on it)




Process Steps
Step 1.0 Receive Request for Prepayment
Receive request in writing or electronically for a prepayment.

Prepayment is a type of invoice you enter to pay an advance payment for expenses to a supplier or employee. You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.
If you want to apply a prepayment to one or more invoices or expense reports, you must first approve and pay the prepayments. You control when a prepayment is available by theSettlement Date you enter and by optionally applying a hold to the prepayment.

When you enter an invoice for a supplier for whom you have outstanding Temporary prepayments, Oracle Payables notifies you that you have prepayments available that you can optionally apply. You can also review the Prepayment Status Report to check the status of all prepayments in your system.

Step 2.0 Enter Pre-Payments
Find or Enter the Invoice with a ‘Type’ of Prepayment. There are also two types of Prepayments: Temporary and Permanent. Temporary can be applied against an invoice or it can be applied against an advance to an employee expense report. Permanent prepayments are created for expenses which are not invoiced for example a lease deposit. Permanent prepayments do not get applied against open invoices. You can however change the status from Permanent to Temporary in the Invoices window.

Create a Permanent prepayment for road tax and insurance premium. The system will create the following journal entries:

DR                Prepaid Expense
CR     Liability
DR                Liability
CR     Cash clearing/Cash

The detail of expense for each item will be captured in General Ledger

Step 3.0 Go To Invoice Approval
Continue with invoice approval and resolve hold processing.

Step 4.0 Run Prepayments Status Report
Run this optional report to review unapplied prepayments and unpaid or partially paid invoices for vendors/employees. This report may also be used to compare invoices and prepayment for vendor/employees to determine if there are outstanding prepayments which can be applied against unpaid invoices.

Step 5.0 Go To Check Payments
Continue with the Check Payments process if applicable.
Labels:

Comments

Post a Comment

Popular posts from this blog

Create Accounting for a Payment generates errors 95333 and 95359

Create Accounting for a Payment generates errors 95333 and 95359 Error: 95333: A conversion rate does not exist to convert USD to AUD for the conversion type Corporate and conversion date 20-MAR-09 for line -25. Please use the Daily Rates form in General Ledger to enter a conversion rate for these currencies, conversion date and conversion type. 95359: There is no accounted amount for the subledger journal entry line. Please inform your system administrator or support representative that: The source assigned to the accounting attribute Accounted Amount has no value for extract line number 88547. Please make sure the source assigned to the accounting attribute Accounted Amount has a valid value, or assign a different source to this accounting attribute. Solution: 1. Specify a conversion rate for the currencies and conversion date mentioned in the error message 95333 Navigation under the General Ledger responsibility: Setup > Currencies > Currency Rates Manager > Daily Rates ...
15 comments
Read more

Public API’s for FA Transactions

Public API’s for FA Transactions So far Oracle FA is have all the good things except the lack on reporting.Oracle FA is now offer lot of public API's that can be used to interfacing with third party or Oracle application other modules. Here are some of transaction's API's:   Additions API if you have requirement to add assets directly via PL/SQL then use  FA_ADDITION_PUB.DO_ADDITION. If you have selected the Allow CIP Assets check box on the Book Controls window of a tax book when adding CIP assets using the Additions API, the this API automatically adds those CIP assets to that tax book at the same time that they are added to the corporate book. Adjustments API you can make cost adjustments to your assetsdirectly via PL/SQL using  FA_ADJUSTMENT_PUB.DO_ADJUSTMENT  for any  process adjustment. Detail can be found in appendix H) You can use this API if you have a custom interface that makes it difficult to use with the existing Oracle Assets interfaces for adjusti...
Post a Comment
Read more

AP Table Relation Oracle Apps

AP Table Relation Oracle Apps ORACLE PAYABLE TABLE RELATION Source Table Dependent Table Condition AP_INVOICE_LINES_ALL AIL ZX_LINES_SUMMARY ZLS AIL.invoice_id = ZLS.trx_id and  ZLS.application_id  = 200 and  ZLS.entity_code  = 'AP_INVOICES' and  ZLS.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and  AIL.summary_tax_line_id = ZLS.summary_tax_line_id AP_INVOICE_LINES_ALL AIL ZX_LINES ZL AIL.invoice_id = ZL.trx_id and  ZL.application_id  = 200 and  ZL.entity_code  = 'AP_INVOICES' and  ZL.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and  AIL.line_number = ZL.trx_line_number AP_INVOICE_DISTRIBUTIONS_ALL AID ZX_REC_NREC_DIST ZD AID.invoice_id = ZD.trx_id and  ZD.application_id  = 200 and  ZD.entity_code  = 'AP_INVOICES' and  ZD.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and...
Post a Comment
Read more