Vendor Prepayment

Overview

The Vendor Prepayment feature is used to manage deposits your company makes to a vendor before goods and services are received. Prepayments are a percentage of the Purchase Order total amount. Prepayments are represented with a Goldfinch Payment Term record, which is then assigned to a Vendor Account.

Setup Vendor Prepayment Feature

To set up the Vendor Prepayment feature, the following steps must be completed:

• Create a Vendor Prepayment GL Account.

• Create a Payment Term with a default Prepayment %.

• Assign the Payment Term to the Vendor Account.

• Create a Vendor Prepayment Service Item.

Note: Vendors can only have one Payment Term assigned to their Account. If necessary, the Payment Term may be changed directly on the Purchase Order.

• The same Vendor Prepayment GL Account is used for all Prepayment Terms.

• The same Vendor Prepayment Service Item is used for all Prepayment Terms.

Creating a Vendor Prepayment GL Account.

Open the App Launcher. Search for GL Accounts.

Click on New to create a new GL Account.

Populate the following values in the New GL Account form:

Click Save.

Creating a Payment Term with a Default Prepayment %

Open the App Launcher. Search for Payment Terms.

Click on New to create a new Payment Term.

Populate the following values in the New Payment Term form:

Click Save.

Assign the new Prepayment Payment Term to the Vendor Account

Open the App Launcher. Search for Accounts.

Click on the Vendor Account that you’d like to assign the Prepayment Payment Term.

Edit the Payment Term field and enter the Prepayment Payment Term that was previously created.

Click Save.

Creating a Vendor Prepayment Service Item

Open the App Launcher. Search for Items.

Click on New to create a new Item.

Populate the following values in the New Item form:

Click Save.

Next, we will need to set up the Account Posting Setup Record.

On the new Z-Vendor Prepayment Item, find the Account Posting Setups related list and click on New.

In the New Account Posting Setup form, populate the following values:

Click Save.

Finally, we will assign the new Z-Vendor Prepayment Item to the Company Setup record.

Open the App Launcher. Search for Company Setup.

Click on the Company Setup record. Normally, your Salesforce instance will have only one Company Setup record.

Finally, assign the new Z-Vendor Prepayment Item to the Vendor Prepayment Item field.

Click Save.

How to use the Vendor Prepayment Feature

Create a new Purchase Order for the Vendor with Prepayment Payment Terms.

• Previously, the Prepayment Payment Term was set on the Vendor Account.

• By default, the Purchase Order is populated with the Payment Term and Prepayment % from the Vendor Account.

• Goldfinch allows you to modify the Prepayment % directly on the Purchase Order as needed.

After entering all Purchase Lines, click on the Create Prepayment Invoice button to create a Prepayment Purchase Invoice.

The Prepayment Purchase Invoice is a standard Goldfinch Purchase Invoice with a Vendor Prepayment Service Item added as a Line Item.

The prepayment amount is Order Cost * Prepayment %.

Multiple Prepayment Purchase Invoices may be created for a Purchase Order. The total prepayment amount for all Prepayment Purchase Invoices cannot exceed the Order Cost.

Click on Post to post the Prepayment Purchase Invoice.

When the Prepayment Purchase Invoice is posted, the Vendor Prepayment GL Account that was previously created will be debited.

The Vendor Invoice can now be paid and the Vendor Payment can be applied against the Prepayment Purchase Invoice.

After receiving the goods and services, return to the Purchase Order page. Create a Warehouse Receipt and post the Warehouse Receipt.

Create the Purchase Invoice using the standard procedure.

GoldFinch will total up prepayment amounts and insert a line to the Purchase Invoice to subtract the total prepayment amount that was already invoiced.

When the invoice is posted, the Vendor Prepayment GL Account is credited.