Introducing our Sage Business Cloud Enterprise Management Help Series where today we will be discussing how to use the prepayment posting function.
When you need to allocate an invoice to a payment made in advance, be it a supplier or customer invoice, Sage Business Cloud Enterprise Management (Formerly Sage X3) allows you to settle the invoice using the Prepayment Posting function.
There is one for customers and another for suppliers, as seen highlighted in the screenshot below.
The invoices created in the AR/AP Accounting or in the Sales & Purchase modules will reflect in the Prepayment Posting function, as long as they have been posted and are open invoices.
Let us show you how it works.
You would have received money in advance not yet allocated and it would have been captured in a payment that has no invoice on the line and posted it, e.g.
When you are ready to allocate the invoices to the prepayment, go to AP/AR Accounting> Open items, our example is on the supplier side and therefore we will use Supplier Prepayment Posting.
Enter the respective details on the header. Upon doing so, the list of unallocated payments relating to the Paying BP will reflect.
In the grid enter the following:
o Posted: Double click here and a drop-down box opens with the options of Order, Invoice & Not Allocated. Choose the Invoice option for allocating the invoice to the payment and tab off.
o Type: Select the type of invoices that you are about to pay and tab off.
o Ord/ Inv: Select the invoice number to pay and tab off.
o Amount to post: The full amount of the payment will reflect here by default but you can change it to the portion that will be paid to the selected invoice, normally the full value (to fully settle the invoice granted the prepayment covers it) or portion thereof.
Tab through to the end of the line onto the next line and enter the respective details for the next invoice to pay. Note if there is a balance on the payment, this amount will reflect in the Amount to Post column.
In our example, the third line with the balance of 100 GBP is the unallocated balance left on the payment.
Another option to select invoices is using the Assignment button on the bottom right which makes it possible to automatically allocate invoices to payments. By default, it is the oldest invoices that are allocated to the pre-loaded payments in the body of the grid.
Press the Save button, and a window opens to which you say, OK.
A log opens up showing which journals were created:
The invoices are then allocated & matched to the payment.
You can see on the supplier situation enquiry that the above invoices are no longer open and the balance on the payment is 100 GBP.
If you take a look at the payment again, you will see the invoices are now loaded onto the lines of the payment as well as the balance of 100 GBP. This is the main difference between using the Prepayment Posting function versus the Manual Matching function – it is quite convenient too.
The Customer Prepayment Posting works exactly the same. The only difference is that it will pick up customer invoices and payments.
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