Prepayment Invoices: Linking a Prepayment Invoice to a Sales Order

In MYOB Acumatica, you create prepayment invoices to request a prepayment that is subject to tax reporting. You can create a separate prepayment invoice manually on the Invoices and Memos (AR301000) form, link it to the applicable sales order, and then apply it to any customer's sales invoice. You can also create a prepayment invoice directly from a sales order so that the prepayment invoice will be applied to the sales order invoice automatically.

In this topic, you will learn how to link a separately created prepayment invoice to a sales order of the same customer.

Linking Prepayment Invoices to a Sales Order

You link a released prepayment invoice—that is, an invoice of the Pending Payment status created on the Invoices and Memos (AR301000) form—to a sales order in either of the following ways:

• You open a sales order on the Sales Orders (SO301000) form. On the Payments tab, you add a line. In the line, you select Prepmt. Invoice in the Doc. Type column and the reference number of the prepayment invoice in the Reference Nbr. column. In the Applied to Order column, you specify the amount to be applied to the sales order. Once you save your changes, the system updates the values in the Total Paid and the Unpaid Balance boxes on the Totals tab of the form.
• You open a prepayment invoice on the Payments and Applications (AR302000) form. On the Sales Orders tab, you add a line. In the Order Nbr. column of the added line, you specify the reference number of the customer’s sales order . In the Applied to Order column, you specify the amount to be applied to the sales order. Note that the amount cannot exceed the available balance of the prepayment invoice (the amount specified in the Available Balance box of the Summary area of the form) or the unpaid balance of the sales order (the amount specified in the Unpaid Balance box on the Totals tab of the Sales Orders form). In the Order Total column of the line, the order amount not covered by the prepayment invoice is shown. Once the prepayment invoice has been linked to the sales order, the system adds a line with the prepayment invoice to the sales order on the Payments tab of the Sales Orders form.

When the sales order with the linked prepayment invoice is billed—that is, a sales invoice is created for the sales order—the system automatically applies the fully paid prepayment invoice to the sales invoice by adding a line on the Applications tab of the Invoices and Memos (AR301000) form. On release of the sales invoice, its balance decreases by the Amount Paid amount that has been specified in the line on the Applications tab.

One released prepayment invoice can be linked to multiple sales orders of the same customer.

Unlinking the Prepayment Invoice and Sales Order

You can unlink the prepayment invoice linked to a sales order and link another one, if needed. You unlink the documents in either of the following ways:

• In a sales order on the Sales Orders (SO301000) form: On the Payments tab, you click the line with the linked prepayment invoice and click Remove on the table toolbar. You can add a new line and select another prepayment invoice, if needed.
• In a prepayment invoice on the Payments and Applications (AR302000) form: On the Sales Orders tab, you click the line with the sales order and click Remove on the table toolbar. You can add a new line and select another sales order, if needed.

Once you have removed the connection between a prepayment invoice and a sales order, the total amounts of the sales order on the Totals tab of the Sales Orders form will be affected as follows:

• The Not Released amount is decreased by the Applied to Order amount of the removed line.
• The Total Paid amount is decreased by the Applied to Order amount of the removed line.
• The Unpaid Balance value is increased by the amount specified in the Applied to Order box of the removed line.

Impact of a Voided Prepayment Invoice on a Sales Order

If a prepayment invoice linked to a sales order has been fully written off by a credit memo and the prepayment invoice has been assigned the Voided status, then on release of the application of the credit memo to the prepayment invoice, the system does the following on the Sales Orders (SO301000) form:

• Reduces the Applied to Order amount to 0 in the prepayment invoice line on the Payments tab. The line is not removed from the tab.
• Updates the values on the Totals tab as follows:
  • Reduces the Not Released amount by the Applied to Order amount
  • Reduces the Total Paid amount by the Applied to Order amount
  • Increases the Unpaid Balanced by the Applied to Order amount