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November 6, 2019 - By Bredet Services

Below is a demonstration of a Vendor Prepayment and Settlement of an open invoice to the prepayment. The same process applies to customer prepayments.

First step is to create the Prepayment for the Vendor. Navigate to Accounts Payable – Payment Journal. Click on the lines to enter the prepayment information.

The following image displays the prepayment entry on the line.  This should be a Debit amount with the offset to the Bank.

Careful, not done yet!

On the Payment Tab – Click the button in D365 or the check box in AX2012 for Prepayment Journal Voucher (Image below).

Your next step is to complete the payment generation.  You will then generate your payments as you would based on the method of payment.

After the payment has been issued you can now begin to settle open invoices against the payment.

Navigate to Accounts Payable Vendors – select Vendor that you have issued a prepayment too.  Click on the Invoice Tab.  In the “Settle” section on the ribbon select Settle Transactions. (See below image)

Select the check box for both the prepayment and the invoice, (it will give you a warning you are selecting a prepayment – hit OK.).  Once prepayment and invoice selection is complete.

Hit Post in D365 or Update in AX2012.

Congratulations you are all done!  The same process applies to Customer Prepayments.  All navigation is within Accounts Receivable and Customers.


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