Use this function to create and manage the sequence of partial invoices, payments, and the final invoice. You can generate prepayment invoices and dedicated journal entries linked to the manually created customer order. Taxes are deferred on the partial invoices and posted to the tax due account with the final payment.

The prepayment and final invoices are created in the Customer BP invoices function where you need to post payments as for a standard invoice.

Process overview

  • Create the prepayment contract and amounts.
  • Generate prepayment invoices according to contract and the related automatic journals.
    • The first prepayment invoice defaults to the contract date, but you can modify it.
    • Each prepayment invoice can be a partial payment, no payment, or full payment.
    • When a prepayment invoice is generated, the tax amount due posts to a control account until the invoice is paid. At that time, the tax amount posts to the normal account.
  • Generate the final invoice and postings according the automatic journals.
  • You need to post the payment following the standard payment posting process in the Payment/receipt entry or Bank posting functions. Posting the payment transfers the amounts to the normal accounts for revenue and taxes.

You can enter multiple prepayment invoice lines at once, but you can only generate one invoice at a time. Invoices are generated when you click Prepayment invoice. When a payment is posted in the Payment/receipt entry function, you can generate the subsequent invoice.

If you need to reverse a prepayment invoice, you must do this in the Customer BP invoice function. Select Invoice > Credit memo in the Action panel. In this function, the contract number displays as the source document, not the prepayment invoice number.

When you generate the final invoice, the credit memo is not considered.


For the tax amounts due to post to the correct interim account, you need to enter that information in the TRPAYJ - Payment transfer journal and TRFINJ - Final invoice transfer journal parameters (TRS chapter, PIM group).

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

Header

Contract number (field PCNTNUM)

This field displays the contract number when you create a new contract.

The sequence number generated is based on the Prepayment invoice (PREPI) Sequence number assignment.
Contract date (field PCNTDAT)

This field displays the contract creation date, which defaults to the current date. You can modify this date.

Site (field PCNTFCY)

Enter or select a site for the contract.

Status (field STAT)

This field displays the contract status.

Entered: The contract was created but no prepayment invoices have been generated.
In progress: At least one prepayment invoice has been generated, but not the final invoice.
Closed: The final invoice was generated and posted.

Tab Common rules

Source (field PCNTORI)

This field displays the contract source and defaults to Manual.

Customer/Supplier (field PCNTTYP)

This field displays the business partner type: Customer.

Customer/Supplier code (field PCNTBPR)

Enter or select the customer code for the contract.

Control (field PPBPACC)

This field displays the short code for the default control account for the customer, but you can change it.

Account (field SACACC)

This field displays the control account number linked to the short code entered in the Control field and cannot be modified.

Tab Contract info

Block number 1

Final date (field FNLDAT)

This field displays the contract end date and defaults to the current date, but it can be modified.

Prepayment deduction type (field DEDTYP)

This field displays the deduction type and cannot be modified.

Contract currency (field PCNTCUR)

This field displays the currency in the main general ledger for the company. You can change the currency.

Rate (field RAT1)

This field displays the currency rate.

Applicable exchange rate (field RATAPL)

Select the exchange rate rule for the prepayment and final invoices:

Contract rule: This option applies the exchange rate for the contract currency.

Invoice rule: This option applies the exchange rate used for company invoices.
Final invoice control (field FNLBPACC)

Enter or select the control account code for the final invoice.

Account (field FNLSACACC)

This field displays the control account number linked to the short code entered in the Final invoice control field and cannot be modified.
Amount - tax (field PCNTAMTNOT)

Enter the full contract amount due in the contract currency not including tax.

Tax code (field VAT)

Enter the tax rate code for the contract. The tax code must be linked to the company legislation or to a company with no legislation assigned.

Amount + tax (field PCNTAMTATI)

This field displays the contract amount due including tax based on the amount due and the tax rate.

Payment term (field PCNTPTE)

This field defaults to the payment terms for the customer, but you can change the terms for the contract.

Tax rule (field PCNTVAC)

This field displays the tax rule for the customer, but you can change it.

Early discounts/Late charges (field PCNTDEP)

This field displays the rules defined for the customer, but you can modify for the contract.

Description (field PCNTDESC)

You can use this field to enter a contract description.

Sales order (field SOHNUM)
Sales order line (field SOHLIN)

Grid Analytical

Dimension (field CCE)

You can enter a dimension type based on the default dimension types.

Tab Prepayment invoices

Creating invoices

You can enter one or multiple prepayment invoices, but you can only generate one at a time by clicking Prepayment invoice. When an invoice is posted, you can generate the next one.

The first invoice defaults to the contract date, but you can change it. Each subsequent invoice must have a date after the preceding invoice. They type of invoice is determined by the PREPAYC - Customer prepayment invoice parameter (TRS chapter, PIM group) value.

For each invoice, enter a prepayment percentage and the account. The Invoice amount – tax and Invoice amount + tax fields are automatically calculated based on the percentage. Of course, the total amount of prepayment invoices cannot exceed the contract amount.

Note

If a tax code is specified for the contract, only accounts subject to tax and for the legislation are available for selection.

After you create a prepayment invoice you cannot modify it. Deleting a prepayment invoice is controlled by the rules for the legislation.

If you need to reverse a prepayment invoice, this must be done in the Customer BP invoice function. Select Invoice > Credit memo in the Action panel. In this function, the contract number displays as the source document, not the prepayment invoice number.

When you generate the final invoice, the credit memo is not considered.

Paying invoices

When a payment linked to prepayment invoice is posted in the Payments/receipt entry function (GESPAY) or in the Bank posting function (REMBAN), the standard entry is performed according to the payment type.

Then, for each payment line linked to a prepayment invoice, the paid amount is split into net and tax amounts and saved in a table. The paid amounts are updated in Prepayment invoices grid.

The PRPAY automatic journal is used to comply with the VAT posting on payment requirement and is defined in the TRPAYJ – Prepayment transfer journal parameter (TRS chapter, PIM group).

Note

This automatic journal is triggered if:

  • The partial invoice is connected to a contract that is in progress, meaning a final invoice has not been generated.
  • The PRPAY automatic journal is active for the legislation.

Grid

Invoice no. (field INVNUM)

When you generate the prepayment invoice, this field displays the invoice number and cannot be modified.
Credit memo no. (field CREMEMNUM)

If you reversed the invoice on the line using the Invoice > Credit memo action in Customer BP invoices, the credit memo number displays here and cannot be modified.
Invoice date (field INVDAT)

Enter the invoice date. For the first prepayment invoice, the contract date displays by default. For additional invoices, this date must be after the preceding invoice date.
Prepayment percentage (field PPCT)

Enter the percentage of the contract total due for this prepayment invoice. Based on this value, the Invoice amount -tax and Invoice amount +tax values are automatically calculated.
Invoice amount -tax (field AMTNOTLIN)

This value is automatically calculated based on the prepayment percentage, the contract amount, and the tax rate.
Invoice amount +tax (field AMTATILIN)
Account (field ACCLIN)

Enter the account for the invoice.

Paid amount -tax (field INVAMTNOT)

The value is automatically calculated when you post the payment for the invoice.

Paid tax amount (field INVAMTTAX)
Invoice

Click this action to jump to the customer BP invoice on the line.

Tab Final invoices

Creating the final invoice

To create the final invoice, prepayment invoice(s) must exist and be posted. When you enter the final invoice date and account, the Final invoice button is active.

When you click Final invoice:

The postings according to the BPCFI automatic journal, as defining in the TRFINJ – Final invoice transfer journal parameter (TRS chapter, PIM group) are executed for each prepayment invoice. The log file displays the journal entries and amounts are transferred from the prepayment invoice account to the final invoice account.

Note

This step is executed only if the BPCFI automatic journal is active for the legislation.

The final invoice is created in the Customer BP invoices function. The number is displayed in the Final invoice grid. The invoice type is defined in the PAYFINC- Final customer invoice parameter (TRS chapter, PIM group).

Note

The final invoice is not yet posted; only prepayment amounts have been transferred. You need to post the final invoice using the standard procedure in the Customer BP invoices function.

The contract status is now closed.

Grid

Final invoice no. (field INVNUMF)

When you generate the final invoice, the invoice number automatically displays.

Final invoice date (field INVDATF)

Enter the date for the final invoice.
Invoice amount -tax (field AMTNOTLINF)

This value is automatically calculated based on the remaining contract balance, the contract amount, and the tax rate.
Invoice amount +tax (field AMTATILINF)
Account (field ACCLINF)

Enter the account for the final invoice.
Paid amount -tax (field INVAMTNOTF)

This value is automatically calculated based on the remaining contract balance, the contract amount, and the tax rate.
Paid tax amount (field INVAMTATIF)
Invoice

Click this action to jump to the customer BP invoice on the line.
Invoice

Reports

By default, the following reports are associated with this function :

  BPCINVFIN : Final invoice

  BPCINVPRE : Prepayment invoice

This can be changed using a different setup.

Specific actions

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation