August 14th, 2012 by Mohamed Aamer

Recently I explored the vendor prepayment function in MS Dynamics 2012 on my previous blog posts which covered overview of the function, posting profile setups, vendor prepayment assignment, and settlement.

At this post I will look at the final step of vendor prepayment which completing the business cycle by applying the prepayment invoices to balance vendor account.

MS Dynamics AX 2012 Vendor Prepayment

 

 

 

 

 

 

The warehouse keeper receives the goods from the vendor, and performs the product receipt (physical update).

 The vendor issuing the Purchase Order invoice and the accounts payable accountant register the Purchase Order invoice in MS Dynamics AX 2012, enter the invoice number, and invoice description.

The accounts payable accountant should apply the prepayment on the vendor invoice, here I will assume the AP accountant will apply prepayment invoice on the Purchase Order invoice. by click on Apply prepayment

MS Dynamics AX 2012 AP-Prepayment

 

After applying the prepayment MS Dynamics AX 2012 creates a line with prepayment amuont

MS Dynamics AX 2012 Vendor Prepayment

 

If the AP accountant does not apply the vendor prepayment invoice MS Dynamics AX 2012 will pop up an info log

MS Dynamics AX 2012 Vendor Prepayment

Here MS Dynamics AX 2012 gives an option to apply the vendor prepayment invoice on vendor account after posting PO invoice

Go to vendor code on All vendor list, select vendor, select Invoice tab, and click on Apply.

MS Dynamics AX 2012 Vendor Prepayment

 

 

 

 

 

 

 

 

 

 

The generated entry is based on posting profiles setup on MS Dynamics AX 2012 demo company:-

Entry to cancel physical receiption update, and generates financial update

Dr.Accounts Payable – Uninvoiced 1000
Cr.Accounts Payable – Raw Materials-1000
Dr.Finished Goods Inventory 1000
Cr.Finished Goods Inventory -1000

Entry to apply prepayment to pyable account

Dr.Accounts Payable – Raw Material 100
Cr.Prepaid expense -100

User group: DynamicsArabia

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