Prepayment Management

For each sales order created and not posted in invoicing, prepayment open items can be generated and they will be submitted to payment management and deduced from the final invoice payment. These prepayments can be generated automatically depending on the payment mode set up for the sale transaction (see the Payment conditions documentation). Prepayment management makes it possible either to modify the automatically generated prepayments or to directly create prepayment open items.

In order to manage these accounts, it is thus required to specify the order numbers that will be attached to them.

Once the document number has been specified in the dedicated field, information relating to this order is displayed such as the total amount for the order.

The prepayment lines make it possible to enter a prepayment open item or to view the already existing open items. It is thus possible to rapidly view and modify the existing open items.

The prepayment table contains the following information:

• Payment type
  This column mentions whether the open item is a "Prepayment" or "Warranty retention" type.
• Payment method
  The payment method indicates which payment type is going to be used, or can be suggested for prepayment settlement (see documentation Payment methods). This field is initialized by default if a prepayment open item has already been generated. Otherwise, it will be necessary to specify one to be able to proceed with the entry.
• Currency amount
  It is the amount that will be suggested for the payment. It is expressed in the currency indicated in the header.
• Open item/Planned issue
  It is the open item due date, and the date on which the issue of this open item is planned. These dates are used for the payments.
• Tax
  It is the tax code that needs to be applied to this open item. The tax codes are defined in a dedicated function (see the Tax rates documentation).
• Prepayment to be deduced
  This field is used to reduce the part of the prepayment that will be deduced from the total amount of the final invoice when settling it.
  The prepayment will be entirely settled, but it will be posted to the invoice in part.

Conditions for calculating prepayment amounts:

According to the TPT - Payment with VAT conditions activity code, prepayments are generated either on the excl. tax amount or on the incl. tax amount of the order.

The prepayment generation is based on incl. tax Valuation tables of the order (that can be accessed from the Incl. tax Valuation field of the order lines) grouping, by tax code, both the various excl. tax amounts and the various invoicing elements.

When the prepayment is generated from the incl. tax amount, its amount is calculated as follows:

* If order lines are associated with one single tax code, one prepayment is generated with the tax code.

* If order lines and/or invoicing elements are associated with different tax codes, the system searches the tax code to be applied.
Note : only VAT type taxes are taken into account; the levy and local taxes are never taken into account.

Several cases can occur:

• If an amount covering the whole prepayment exists, one single prepayment is created with the tax code.
  See Example 1 below.
• If several amounts covering the whole prepayment exist, the tax code of the highest amount is taken into account upon creating the prepayment.
• If no amount covers the whole prepayment, then several prepayments are created. Each prepayment is created with the corresponding tax code, beginning with the highest amount until reaching the total amount of the prepayment to be created.
  See below, examples 2 and 3.
  To the extent where, unlike the VAT type taxes, levy and local taxes are not taken into account in the calculation, a residual amount can remain. In this case, a final prepayment is created by associating the exempted tax code specified by the parameterEXETAX - Exempt tax code(TC chapter, VAT group).
  

Example 1:
Order with no invoicing element applying to products sharing the same tax code.

Valorisation TTC

Tax	Ex-tax amount	Tax	Rate	Tax amt	Amount incl tax
Normal	*100.00	FR1	*19.60	19.60:	119.60:

Payment conditions: 1 prepayment of 50% on order, 1 prepayment of 50% after 30 days.
Prepayment amounts: *59.80

Generated prepayments:

• Prepayment on order with FR1 tax code: *59.80
• Prepayment after 30 days with FR1 tax code: *59.80

Example 2:
Order with no invoicing element, applying to products with two different tax codes.

Valorisation TTC

Tax	Ex-tax amount	Tax	Rate	Tax amt	Amount incl tax
Normal	*100.00	FR1	*19.60	19.60:	119.60:
Reduced	*100.00	FR2	*5.50	5.50:	105.50:
General total	*200.00		---	----	225.10:

Payment conditions: 1 prepayment of 50% on order, 1 prepayment of 50% after 30 days.
Prepayment amounts: *112.55

Generated prepayments:

• Prepayment on order with FR1 tax code: *112.55
  
• Prepayment after 30 days with FR1 tax code: *7.05
• Prepayment after 30 days with FR2 tax code: *105.50
  Or a total of 112.55

Example 3:
Order with invoicing element and 3 different tax codes: 2 tax codes for lines and 1 tax code for the invoicing element.

Valorisation TTC

Tax	Ex-tax amount	Tax	Rate	Tax amt	Amount incl tax
Normal	*100.00	FR1	*19.60	19.60:	119.60:
Reduced	*100.00	FR2	*5.50	5.50:	105.50:
Invoicing element	*50.00	FR9	*25.00	12.50:	62.50:
General total	*250.00		---	----	287.60:

Payment conditions: 1 prepayment of 50% on order, 1 prepayment of 50% after 30 days.
Prepayment amounts: *143.80

Generated prepayments:

• Prepayment on order with FR1 tax code: *119.60
• Prepayment on order with FR2 tax code: *24.20
  Or a total of 143.80
  
• Prepayment after 30 days with FR2 tax code: *81.30
• Prepayment after 30 days with FR9 tax code: *62.50
  Or a total of 143.80