What is the difference between Prepayment created from the Bills and Adjustments screen and the Prepayment created from the Checks and Payments Screen? I am confused as to why a prepayment generated from Bills and Adjustments screen has no related journal entries. These are very common questions that I confront frequently during my visits to my clients so, I have decided to write a blog to explain Acumatica AP Prepayments.
AP Prepayment in the nutshell, is a type of accounts payable document that is created to record advance payments or down payments to vendors. In Acumatica, you can create prepayment in the following two ways:
- As a request
- Direct prepayment
Acumatica Prepayment as a Request
This is the standard way in which prepayment is entered as a request through Bills and Adjustments Screen. It serves as a mere request and can be subjected to approval or denial if approval process is enforced. In addition, this form of prepayment does not generate any financial transactions and accordingly no journal entries. It behaves as a mere document requesting for an advance. Once released, the prepayment becomes available to be selected during check run for payment.
Acumatica Direct Prepayment
This is the simplified way of processing prepayment processing in which you enter the prepayment directly in Checks and Payments Screen. This option does not need to be subjected to approval process. It is simply a means of creating a check directly to a vendor without applying it against anything existing invoice. Upon check printing and release, the payment is registered against vendor’s record and Journal Entries are recorded.
If you require additional information about Acumatica Prepayments, contact MIBAR today.
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