- 7 months ago
💁To Process a Prepayment Order or Transaction, try to Follow these Steps:
✅(1) Post the Purchase Prepayment Invoice, then...
✅(2) Post Advance Payment (Receipt), and...
✅(3) Apply this Posted Payment Entry on the Current Purchase Order, after that Post Regular Purchase Receipts or Invoices (following the standard and old way).
---
➡️Hint: Purchase Prepayment Account is treating like, Prepaid Expense, this is covered under the Current Assets (group) in the Balance Sheet (i.e., Financial Statement of every Company).
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💁Agenda of the Video: If our Vendor/Supplier/Service Provider require to Receive Payment before they'll Ship the Order, we can use the Purchase Prepayment process.
▫️If you require, your Customers, to Pay before you'll Ship their Order to them, you can use the Sales Prepayment process.
We can start the Prepayment process, when we create a Purchase or Sales Order.
---
▫️The Default Prepayment %tage for an item on the Order, or for the Vendor or Customer, will be included in the Prepayment Invoice.
We can also specify a Prepayment %tage to the Entire Document, enabling the "Compress Prepayment" (option).
---
▫️After we create a Purchase or Sales Order, we can create a Prepayment Invoice for it.
Either use the Default %tage for each Purchase or Sales Line, or Adjust the Amount.
For Example, we specify a Total Amount for the Entire Order.
-----------
💁Note: We'll share the "Prepayment" Purchase Order and Invoice "Setup" Part in the upcoming Video
✅(1) Post the Purchase Prepayment Invoice, then...
✅(2) Post Advance Payment (Receipt), and...
✅(3) Apply this Posted Payment Entry on the Current Purchase Order, after that Post Regular Purchase Receipts or Invoices (following the standard and old way).
---
➡️Hint: Purchase Prepayment Account is treating like, Prepaid Expense, this is covered under the Current Assets (group) in the Balance Sheet (i.e., Financial Statement of every Company).
----------
💁Agenda of the Video: If our Vendor/Supplier/Service Provider require to Receive Payment before they'll Ship the Order, we can use the Purchase Prepayment process.
▫️If you require, your Customers, to Pay before you'll Ship their Order to them, you can use the Sales Prepayment process.
We can start the Prepayment process, when we create a Purchase or Sales Order.
---
▫️The Default Prepayment %tage for an item on the Order, or for the Vendor or Customer, will be included in the Prepayment Invoice.
We can also specify a Prepayment %tage to the Entire Document, enabling the "Compress Prepayment" (option).
---
▫️After we create a Purchase or Sales Order, we can create a Prepayment Invoice for it.
Either use the Default %tage for each Purchase or Sales Line, or Adjust the Amount.
For Example, we specify a Total Amount for the Entire Order.
-----------
💁Note: We'll share the "Prepayment" Purchase Order and Invoice "Setup" Part in the upcoming Video
Category
📚
LearningTranscript
00:00So we need to apply the document.
00:30Now we can release the document and if you want to add some kind of field where you can also add amount excluded tax or amount excluded tax with the prepayment.
01:45So you can check in the higher version.
01:50You can you can get the other field prepayment but including and excluding tax.
02:02We can exclude in text and now we can release the document.
02:23Check this, review the document, post the payment invoice, wait a minute, post the payment
02:51invoice, post and print, review, payment invoice posting, memo, credit memo, and check here.
03:12Next, based on the quantity to receive and quantity to invoice, this will work.
03:42Today, we are conducting a training program on the famous concept of prepayment orders.
04:04Let's get started.
04:06I am going to welcome our trainer.
04:09She is a senior functional consultant and freelancer, Ms. Madhvi Pandey.
04:16Madhvi, welcome to our channel.
04:19My first question is, Madhvi, please tell us what is prepayment?
04:26Pre-payment will advance payment received on the basis of an order.
04:35If you are dealing with someone like your supplier or vendor and if he offers a condition to you
04:43that he wants a fixed payment or advance, then he supplies or shipped goods to you,
04:53so you need to pay a down payment or advance payment based on that condition to your supplier or vendor.
05:02This is a prepayment order.
05:05On the basis of the payment, the vendor supplies you the goods, supplies or shipment.
05:11You can say anything and after that, you can pay the rest of the money after generating the main actual invoice.
05:26My second question is, please share this prepayment order concept via an example
05:32and please share general ledger entries during the current scenario creation.
05:41So, first I need to share my screen.
06:02Let me check the work date.
06:11This is a sample Kronos company, the educational version.
06:24My screen is visible to you?
06:27Yes, it's visible.
06:28So, I'm going to tell you how you can generate a transaction related with your supplier or vendor
06:36who offer you a condition that he needs a prepayment order.
06:43So, first, you need to select your vendor.
07:03Let me check his card.
07:10This is a vendor card.
07:13So, this is a vendor, vendor code is 10, name is Rajan Sharma and let me check the state.
07:35State code is Delhi.
07:36And geographical location wise, he is a domestic vendor and the tax information is already defined.
07:49He is a unregistered vendor.
07:54So, now we can generate a purchase order because this is my supplier or vendor.
08:04How can we convert a simple purchase order into prepayment?
08:18We are going to see in this process.
08:22So, if you are choosing a vendor card, you can directly click on new document and this process will work as a simplified way that a vendor is add-on on your purchase order automatically.
08:39So, the general tab is automatically filled because we are selecting new document using the vendor card.
08:57So, if you are choosing a vendor card.
08:58Now, if vendor will supply you any kind of document number, you can put here to record it like I am entering a simple number.
09:15So, here we can replace it after generating the other details.
09:22This is a dummy number.
09:27We will replace it after generating lines and other things.
09:32So, in the line area, you can select type as an item or GL account based on your scenario.
09:42I am selecting item.
09:44See, if you want to add GL account, if you want to add comment, resource, fix assets, charge item based on your scenario.
10:11I am selecting item and now I am going to purchase any item from Rajan Shandam.
10:20He is our vendor now for supplying goods based on the prepayment conditions.
10:30So, we can select anything like I am selecting the touring bicycle.
10:42This is the simplest and normal process when you are creating a purchase order.
10:49You need to fill the general tab and the lines area and after that, we will discuss about the prepayment condition.
11:02So, if the transaction is taxable, this will show in your tab.
11:13The taxation tab is showing.
11:17Now, we need to check the prepayment.
11:20Percentage details.
11:22Scroll down and check your
11:28All the tabs.
11:31These are the header tabs.
11:34See, this is your prepayment tab.
11:46Other tab you can close.
11:51You can close other tabs.
12:06You can close other tabs.
12:12Now, we are focusing on this prepayment tab.
12:17Let us assume the current vendor wants 10% advance payment for this order.
12:27Because this order will convert into the received GRN and next into the purchase invoice.
12:35So, vendor wants 10% of the GRN goods received note on the basis of this prepayment percentage.
12:46You have modified percentage because last was the 0 and now this is going to 10%.
12:53Do you want to update the lines? Yes.
12:58So, this will update to 10%.
13:20After fixing this, you need to check the compress prepayment.
13:26This option specifies that prepayment of the purchase order are combined if they have the same general nature accounts for prepayment or the same dimension.
13:37And if you are going to choose multiple lines, like if you are adding some other item also, like front wheel.
13:52So, this will work as a combined order.
14:04And one more thing.
14:07So, this will work as a combined order.
14:09But if you want to apply as a single single line, you need to add some other fields here.
14:23And if you want to receive multiple shipments, you can also change the quantity here.
14:32Like for the first line, I am going to receive 10 quantity and the second line, I am going to receive 5 quantity.
14:44And for the invoice, I will generate invoice from the other screen as well as from here.
14:53So, you can receive only those quantity, what you receive in the ZRN field.
15:05So, this will work after receive.
15:09You can generate invoice.
15:10You can generate invoice, what you received.
15:14From that, this will work.
15:18Let me check to change it.
15:21Like I am going to change this.
15:40I am going to change this.
15:41Sure.
15:42I am going to take a new year to travel.
15:43I am I our home.
15:44I am I caring about this.
15:45I am going to change this.
15:46From within that, I put theucha Imperium up.
15:47I have electrician Dustin hit, starting out.
15:48And we are just teaching the newsletter.
15:51I, people are currently until one to two years ago, I am on theinis drive the message of money.
15:52And I ask, now, who were I putting all my daily needs?
15:53I can take aside a new On-line manager then I am going to my CV, and who I am really offering.
15:55Like I am not going to have the niceness and computerない team,
15:56and unfortunately, I think outside something that I put myself into my pocket now on the spot.
15:57And, at the top of my ID, I am a Juan and and it are just sticksкт inquire.
15:59See, we can change the percentage and if you want to,
16:29allow some kind of discount, you can also allow,
16:35specify the payment discount percent granted on the prepayment if the vendor pays on or before the due date entered in the prepayment, payment discount date field.
16:48This is based on your due date. If you pay within the due date, you can get 2% discount.
16:59I am going to select 2%. You can check the bill amount and you will get 2% discount if you paid before the due date.
17:13Now, we are going to release this document.
17:20See, there are unposted prepayment amounts on the document of type order with the number 106036.
17:35This is our current prepayment order number. You can't release or you can't generate any invoice from this document if you allow the settings of the prepayment here.
17:49Now, the setup part we will include in the next video.
17:56So, we can, we can, we will see, this is the part of the first portion.
18:03But, okay, because this is includes the taxation part, we need to allow the, just get the county period to preview the document.
18:19So, if you missed anything, system will prompt you, system will show you the validation messages.
18:28So, this is GST period, I think GST accounting period.
18:47We can check with the tax type.
18:57GST accounting period is enabled.
19:06We can also check with the accounting period.
19:20Tax accounting period.
19:23Here we can check the GST accounting period.
19:282025, okay, we need to create one more.
19:36Text type, okay, GST, starting date, system will automatically select.
19:49Stove, April.
20:04Done.
20:06So, it will include quarters.
20:09We have three quarters of 4-4 month.
20:14Started from April till your next year's March for the financial year, for the fiscal year.
20:24Now, back to, we'll be posting.
20:36After reviewing all the validations, you can check the preview.
20:44Preview of the GL entries.
20:46Status must be equal to released.
20:51And system will not release this document till you apply any kind of prepayment.
20:57So, we need to check the prepayment functionality.
21:01See, here you can check the prepayment and we can also check here.
21:11Now, there is no nothing.
21:13But we can check again under the action button here.
21:20We are going to check the prepayment test report.
21:24Preview, prepayment, invoice posting.
21:30First, test report.
21:31First, test report.
21:32Next, the prepayment, preview posting.
21:37You need to just click on the preview.
21:38You need to just click on the preview.
21:44See, this is the test report we can generate for the prepayment invoice.
22:08You can check the prepayment discount is showing here.
22:12And the name, the date, the item description and prepayment percentage.
22:20And the prepayment line amount excluding tax.
22:23You can also add this field in your screen of order, purchase order.
22:29Prepayment line amount exclusive tax.
22:36Now, back to the screen.
22:42Click on action button, click on posting.
22:47And here, we can check preview prepayment invoice posting.
22:59See, the GL entry.
23:08Vendor prepayment percentage.
23:12You can check the GL name.
23:15This is the educational version.
23:18And this is the Kronos GL.
23:20You can rename the GL name.
23:22Vendor prepayment.
23:24You can already, you can write here the vendor prepayment description only.
23:32No need to add the VAT 25%.
23:35We can change this.
23:38So, this is going to vendor prepayment only.
23:43Debit.
23:44And created us a vendor domestic.
23:50The vendor name is, I think, Rajan Sharma.
23:54Right?
23:55So, you can check.
23:56Now, the vendor later entry and the detail vendor entry.
24:02Okay.
24:03This is now.
24:05The next part is.
24:13This is released.
24:29You can check the posted document.
24:36The same, which is written.
24:37That's okay.
24:38So, that's okay.
24:39The student version.
24:41The other way, the vendor is a vendor.
24:44Here, we know it is.
24:45Not like an affiliate.
24:46It's our strategy.
24:47You can check the video.
24:48And the customer is going to send it.
24:50That's okay, I think.
24:51If you're a person, you're a person who gets an oil.
24:52You can check it.
24:53You can check it.
24:54You can check it.
24:55It's okay.
24:56You can check it.
24:57You can check it.
24:58And it's okay.
24:59It's okay.
25:00You can check it, there.
25:01You can check the link.
25:02I'll tell you.
25:03You have the type of your candidate.
25:04You can check it.
27:35You cannot post the document of type order with the number 106036 because this is under
27:45the prepayment before all related prepayment invoices are posted.
27:49So, we need to generate a vendor card.
28:03So, we can apply here the vendor vendor.
28:17We can apply the payment amount.
28:32Let's assume we are going to pay 10,000 rupees on advanced basis.
28:57We need to include the bank.
28:58We need to include the bank.
29:11You can post this document.
29:12You can post this document.
29:14For centering, preview posting, you can check all the thing.
29:18This will be posted.
29:19Now, we can use the bank payment document also.
29:25Now, we can use the bank payment document also.
29:26Now, we can apply the document.
29:32Now, we can apply the document.
29:33Now, we can apply the document.
29:34Now, we can apply the location.
29:35Now, we can apply the document.
29:41Location payment.
29:42Location payment.
29:43Location payment.
29:44And the document number.
29:46See, this is our payment.
29:48We just paid 10,000 rupees.
29:54So, we can apply this.
29:55Set applies to ideal.
29:56We can apply.
29:57You can pay only 10% amount.
29:58No need to pay extra.
29:59System will apply only the related amount.
30:00So, we can apply only 10% amount.
30:01No need to pay extra.
30:02System will apply only the related amount.
30:04So, we just paid 10,000 rupees.
30:07So, we can apply this.
30:08Set applies to ideal.
30:13We can apply.
30:18You can pay only 10% amount.
30:22No need to pay extra.
30:24System will apply only the related amount.
30:28Based on your document.
30:29Based on your GRN.
30:38So, we need to apply the document.
30:58This is released.
31:11So, we can generate the GRN.
31:23The quantity received field has been updated.
31:28And quantity to receive has been reduced from the main quantity to receive quantity.
31:37The main quantity was 50 and 100.
31:40And actual received quantity 5 and 10.
31:52So, this will 45 and 90.
31:55Next quantity to invoice.
31:57So, we need to post invoice because we already received.
32:04Receive and invoice.
32:06We will work with the receive first.
32:12Then we will invoice the received quantity.
32:15You can disable this field.
32:20So, mistakes will not happen.
32:23The last one option.
32:24You can disable this.
32:26Now.
32:27Okay.
32:28So, you can.
32:29Vendor invoice number.
32:33What the vendor send to you.
32:34On.
32:35Invoice document.
32:36The purchase invoice document.
32:37Which we are.
32:38We are.
32:39Invoice document.
32:40Okay.
32:41Okay.
32:42Okay.
32:43Okay.
32:44So, you can.
32:45Okay.
32:46So, you can.
32:47Now.
32:48Vendor invoice number.
32:49Invoice number.
32:50What the vendor send to you.
32:52On.
32:53Invoice document.
32:54The purchase invoice document.
32:55Which we are.
32:56We are.
32:57Recording here.
32:58So, vendor invoice number is.
32:59That as you.
33:00Because system will not.
33:02Accept the duplicate.
33:03Invoice number.
33:04Okay.
33:05Okay.
33:06Okay.
33:07Okay.
33:08Okay.
33:09Okay.
33:10Okay.
33:11Okay.
33:12Okay.
33:13Okay.
33:14Okay.
33:15Okay.
33:16Okay.
33:17Okay.
33:18Okay.
33:19Day.
33:20So.
33:25Okay.
33:27Okay.
33:28Alright.
33:29Okay.
33:30Alright.
33:32Come here.
33:33Who is paying?
33:34Okay.
33:35We are paying attention.
33:36Now.
33:37We can.
33:38Post.
33:39Or you can check the.
33:41Preview mode also.
33:42See.
33:43Posting preview.
33:44Check all the.
33:45entrepreneurs.
33:46All the entries.
33:49the taxation part because this is the GL entry before the invoicing.
33:59You can check all the things.
34:08And before posting this, you can check all the related entries.
34:14You can click one by one.
34:19And click on here.
34:23Same thing.
34:26Now,
34:36if you want to check the GRN,
34:43then you want to check the
34:49received document.
34:57You can also
34:58entries and you can
35:05recheck the document of the receipt.
35:08This is the purchase received.
35:09Show related entries after selecting the document.
35:13You can check all the details.
35:16See,
35:16two items are here.
35:17Quantity received was 10 and 5.
35:20With all the details because this is the received document of the goods.
35:26So,
35:27rate is not relevant here.
35:30Only quantity is relevant.
35:32And we can also check
35:34also check the
35:41other details
35:46like ILEN value entry.
35:52We are going to post
35:55and print the invoice.
36:02The invoice.
36:03We turn it.
36:05Invoice is pending.
36:07Yeah.
36:08Invoice is pending.
36:09Quantity invoice field is 0.
36:13Post and print.
36:14And
36:18it's
36:18done.
36:39So,
36:40you can also check
36:41the document
36:53after posting.
37:03You can check
37:04the posted document.
37:06You can check
37:06the posted document.
37:11See,
37:35for strict purchase
37:35and
37:36the
37:37sales order.
37:37Yes.
37:38Amrit,
37:38next question is.
37:51My third question is,
37:53is the same concept
37:54will work for sales order?
37:58Yeah.
37:59The concept is
38:00working for both
38:02of the modules,
38:03sales and purchase.
38:04Okay,
38:12that's all.
38:13Thank you,
38:14Madhvi,
38:15for sharing
38:15the valuable insights.
38:17Friends,
38:18we will be back
38:19with the next
38:20training session
38:21very soon.
38:22Today,
38:22we have shared
38:23the transaction part.
38:25In the next video,
38:26we will share
38:26the setup part.
38:28Till then,
38:28keep watching,
38:30keep learning
38:30and don't
38:31forget to
38:32like and
38:32subscribe
38:33our video.
38:34In the next video.
38:43you
38:45you
38:47you
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