Sales with Payments and Prepayments: Prepayments and Payments in Invoices
When you prepare an invoice for a shipment or sales order, any prepayments and payments that were applied to the sales order are transferred to the invoice. If the sales order has a pre-authorized credit card payment, it is also transferred to the invoice and can be captured on the Invoices (SO303000) form.
Pre-Authorized Prepayments and Payments
Suppose that for a sales order with the Back Order Allowed shipping rule specified on Shipping tab of the Sales Orders (SO301000) form, you have confirmed a partial shipment. When you prepare an invoice for the shipped goods in this sales order, the pre-authorized credit card payment is partially transferred to the invoice, with the remainder applied to the sales order. If the payment application amount that is transferred to the invoice is less than the pre-authorized payment amount and you click Capture on the Applications tab of the Invoices (SO303000) form, only the amount applied to the invoice is captured.
Once a pre-authorized credit card payment has been captured, it is automatically released, and the payment has no more balance applied to the sales order. Then the system recalculates the application of the payment amount to the sales order.
If the sum of the total payment amount applied to the sales order and the total payment amount transferred to invoices is less than the required prepayment amount for the sales order, the system assigns the Awaiting Payment status instead of the Back Order status to the sales order on the Sales Orders form.
When an invoice with applied prepayments or payments is created on the Invoices form, the system checks the following conditions and performs the noted steps:
- If any payment requires validation, the system assigns the Pending Processing status to the invoice.
- If any payment has the credit card payment method and a pre-authorized transaction, the
system assigns the Pending Processing status to the invoice.Note:An invoice with this status cannot be released.
- If the Hold Invoices on Failed Credit Check check box is selected on the Sales Orders Preferences (SO101000) form and the customer's credit limit has been exceeded, the system assigns the Credit Hold status to the invoice.
If a pre-authorized credit card payment is transferred from a sales order to the invoice, the system creates the invoice with the Pending Processing status. If the invoice has the Balanced status and a credit card payment with a pre-authorized transaction is created or applied to the invoice, the invoice receives the Pending Processing status.
A user can capture pre-authorized credit card payments applied to an invoice on the Applications tab of the Invoices form by clicking Capture. If a pre-authorized credit card payment is captured successfully, the system automatically releases the payment and assigns the Open status to it. The system then assigns the Balanced status to the invoice (if the customer's credit limit is not exceeded). If the capture of the pre-authorized credit card payment fails, the system assigns the Credit Hold status to the invoice (despite the customer's credit limit state). If multiple pre-authorized credit card payments are applied to a single invoice, the invoice keeps the Pending Processing status as long as at least one payment has not been captured.
Credit card payments cannot be captured on the Invoices form if they are applied to multiple documents.
Invoices with a Required Prepayment Amount
On the Invoices (SO303000) form, the system assigns the Credit Hold status to an invoice with transferred prepayments or payments if all of the following conditions are met when the invoice is created:
- The invoice has credit terms for which the Prepayment Required check box is selected and a prepayment percent is defined in the Prepayment Percent box on the Credit Terms (CS206500) form.
- The prepayment or payment for the total sales order amount has been transferred to the invoice from the sales order.
- The amount of the invoice is greater than the sales order amount (for example, the freight price has been added after the shipment was confirmed).
- The difference between the amount of the original sales order and the calculated amount of the invoice has not been recorded as a write-off amount.
- The unpaid balance of the invoice is greater than 0.
The invoice is also assigned the Credit Hold status on the failure of the capture of a pre-authorized credit card payment that is transferred from a sales order or applied directly to the invoice.