6.4.1.5 (COL) Vouchers Saved in a Foreign Currency
Enter 1 to use the current date as the invoice date Enter 2 to duplicate the invoice date Leave this processing option blank to increment the invoice date.
6.4.8 Running the Recurring Voucher Report
Select Other Voucher Entry Methods (G04111), Recurring Voucher Report.
6.4.9 Setting Processing Options for Recurring Voucher Report (R04305)
See Processing Options for Voucher Journal Report (R04305).
6.5 Processing Prepayments
This section provides an overview of prepayments and discusses how to:
■ Enter prepayment vouchers.
■ Close out negative prepayment items.
6.5.1 Understanding Prepayments
Sometimes you must pay for goods or services before you receive an invoice. For example, you might need to:
■ Pay a travel advance for employee expenses.
■ Pay a deposit on services to be rendered at a later time. ■ Take advantage of a discount.
For situations in which you have not yet received an invoice, you can enter a
prepayment voucher for an advance payment. When you enter a prepayment voucher, the system creates a negative pay item for every pay item on the voucher. You can use only the Standard Voucher Entry program (P0411) to create a prepayment voucher. The process for entering prepayment vouchers uses AAIs to determine the GL expense distribution if no account number is entered in the G/L Distribution Account
processing option. The PCxxxx AAI is used, where xxxx is the GL offset in the processing options for the Standard Voucher Entry program.
A prepayment voucher usually has pay items that net to a zero amount. If that is the case, no GL distribution form appears during prepayment voucher entry. A GL distribution form appears if an amount to distribute exists in the general ledger, which typically happens when different pay items on the voucher have different tax rates and areas.
You can pay the prepayment voucher using either automatic payments or manual payments. If you are going to create the payment in the next batch of automatic
Processing Prepayments
payments, you enter the prepayment voucher and then follow the regular procedures for processing automatic payments. To make the payment using manual payments, you create the prepayment voucher and then pay it using manual payments with voucher match.
Later, when you enter the voucher for actual expenses, you enter it just as you would enter a standard voucher. You can then apply the pending negative pay item to the actual voucher manually so that the amount owed to the supplier is reduced by the amount of the prepayment. Or you can change the pay status of the negative pay item to approved and let the system apply it to any open vouchers for that supplier by running the automatic payment process. The advantage of the manual method is that you can select the specific voucher that closes out a specific negative pay item. The advantage of the automatic method is that the system automatically nets any negative pay items against any vouchers for the same supplier. When you use the manual method, use the Prepayment Selection program (P0411P) to match the reversing pay item of the prepayment voucher with the voucher for actual expenses that was submitted.
6.5.1.1 Example of Entering and Paying Prepaid Vouchers
An employee requests a travel advance of 1,000. To enter the travel advance as a prepayment, you enter a prepaid voucher for 1,000, and the system creates a pending negative pay item for 1,000.
When you post the voucher, the system creates a debit of 1,000 to the prepaid expense account that you specified in the AAIs and a 1,000 credit to the AP trade account. When you post the payment, the system creates a debit to the AP trade account and a credit to the cash account.
These T-accounts illustrate the journal entries:
Figure 6–13 Enter voucher
Processing Prepayments
Figure 6–15 Pay prepaid voucher and post payment
The employee later submits an expense report for 2,200 for travel expenses, which you enter as a standard voucher. You then release the pending negative pay item for 1,000 to reduce the net open amount to 1,200, which is the balance that you owe.
These T-accounts illustrate the journal entries:
Figure 6–16 Enter and post actual voucher
Figure 6–17 Apply negative pay item
Figure 6–18 Post payment
6.5.2 Prerequisites
Before you complete the tasks in this section:
■ Activate prepayments processing in the processing options for the Prepayment
Voucher Entry program (P0411).
See Also:
■ Entering Manual Payments with Voucher Match. ■ Setting Up AAIs for Accounts Payable.
Processing Prepayments
To activate prepayment processing, enter a GL offset account on the Prepayments tab. You cannot use the Payment With Voucher Match program (P0413M) to enter prepayment vouchers.
■ Activate the Tax Area processing option on the Prepayments tab of the
Prepayment Voucher Entry program if you want the prepayment tax form to appear when you enter a prepayment voucher.
■ Set up the AAI item PCyyyy to assign a default prepaid expense account.
The GL offset item that you entered on the Prepayments tab of the processing options for the Standard Voucher Entry program is the AAI item PCyyyy that is used to create prepayment entries.
6.5.3 Forms Used to Process Prepayments
Form Name FormID Navigation Usage
Enter Voucher - Payment Information
W0411A Other Voucher Entry Methods (G04111), Prepayment Voucher Entry
Click Add on the Supplier Ledger Inquiry form.
Enter prepayment voucher information.
Prepayment Tax W0411X Other Voucher Entry Methods (G04111), Prepayment Voucher Entry
Click Add on the Supplier Ledger Inquiry form.
Enter the tax rate area and tax explanation code for a
prepayment voucher. This form appears only if you enter 1 in the Tax Area processing option. G/L Distribution W0411K Click OK on the Enter Voucher -
Payment Information form.
Enter GL distribution information for a voucher.
Work With
Prepayment Selection
W0411PA Other Voucher Entry Methods (G04111), Prepayment Selection
Select a negative pay item to close out. Only negative pay items that have not yet been matched appear on this form. To view negative prepayment items, you must approve the negative prepayment item and you must pay the prepayment voucher.
Manual Payment Entry
W0413MA On the Work With Prepayment Selection form, select Manual Payments from the Row menu.
Net the negative prepayment item and the actual voucher. Select Open Pay Items W0413ME On the Manual Payment Entry
from, select Pay Items from the Form menu.
Select the actual voucher to net to the negative prepayment item.
Split Payments W0411SC On the Work With Prepayment Selection form, select Split Prepayment from the Row menu.
Enter a split prepayment.
Processing Prepayments
6.5.4 Entering Prepayment Vouchers
Access the Prepayment Tax form.This form appears only if you enter 1 in the Tax Area processing option for the Prepayment Voucher Entry program (P0411).
Figure 6–19 Prepayment Tax form
6.5.5 Closing Out Negative Pay Items for Prepaid Vouchers
Access the Work With Prepayment Selection form.7
7