Search HansaManuals.com HansaManuals Home >> Standard ERP >> Purchase Ledger >> Payment Register Previous Next Entire Chapter in Printable Form Search This text refers to program version 8.1 Prepayments and On Account Payments Prepayments and On Account Payments allow you to issue payments to Suppliers without reference to specific Invoices (usually before you have received the Invoices). Prepayments are identified by Prepayment Numbers, while On Account Payments have no identifiers. Please refer here for details about Prepayments and here for details about On Account Payments.A typical workflow when working with Prepayments and On Account Payments will be that you will issue a Purchase Order, for which you will pay a deposit. You will record the deposit as an On Account Payment or a Prepayment. When you receive an Invoice (for the deposit or for the Purchase Order as a whole), you will allocate the deposit to that Invoice, leaving any remaining amount on the Invoice as outstanding. If you use On Account Payments, a single On Account balance will be maintained for each Supplier. When you issue a deposit, the balance will increase, and when you receive an Invoice, the balance will decrease. In reports, it is only possible to display a single On Account balance figure for each Supplier. Prepayments are identified by Prepayment Numbers, allowing separate balances to be maintained for each Prepayment. When you issue a deposit, you will create a new Prepayment, leaving the balances of any other Prepayments issued to the same Supplier untouched. This allows for the detailed monitoring of Prepayments. When you receive an Invoice, you will connect it to a particular Prepayment, again leaving the balances of other Prepayments untouched. Identification by Prepayment Number allows much greater detail to be shown in reports: for example, the Prepayment History P/L report will list every transaction affecting each Prepayment. You must use Prepayments for deposits that you issue in foreign Currencies. The added precision given to a Prepayment by its identifying Prepayment Number means that it can be issued at a known exchange rate. When you allocate the Prepayment to an Invoice at a later date, the exchange rate might have changed and this can be accounted for. If you use an On Account Payment for this purpose, issuing a deposit will simply mean that the size of the Supplier's On Account balance will be increased. When you allocate the deposit to an Invoice, it will not be possible to establish the origin of the funds withdrawn from the On Account balance as On Account Payments have no identifiers. Therefore it will not be possible to account for exchange rate differences. If you need to issue Prepayments and On Account Payments, you must first carry out the following configuration work:
--- The Payment register in Standard ERP:
|