Processing Prepayment Invoices in Purchase Orders

In many business scenarios, companies are required to pay vendors a deposit before receiving goods or services, and these deposits are often associated with specific purchase orders. In countries where taxes must be recognized and reported at the time of prepayment, MYOB Acumatica provides the ability to create prepayment invoices directly from purchase orders. When a prepayment invoice is paid, the related taxes are recognized and included in the tax report for the applicable tax reporting period.

Prepayment invoices differ from prepayment requests in that they support tax recognition at payment time, whereas prepayment requests may calculate taxes but do not recognize them or include them in tax reports.