{"id":301,"date":"2021-12-22T00:00:00","date_gmt":"2021-12-22T00:00:00","guid":{"rendered":"https:\/\/www.versaclouderp.com\/blog\/versa-de-coded-prepayment-for-purchase-orders\/"},"modified":"2021-12-22T00:00:00","modified_gmt":"2021-12-22T00:00:00","slug":"versa-de-coded-prepayment-for-purchase-orders","status":"publish","type":"post","link":"https:\/\/www.versaclouderp.com\/blog\/versa-de-coded-prepayment-for-purchase-orders\/","title":{"rendered":"Versa De-Coded: Prepayment for Purchase Orders"},"content":{"rendered":"<p>On typical days, businesses deal with the inflow and outflow of raw materials, finished goods, and cash. Multiple scenarios can affect the workflows. This includes prepayment for purchase orders.<\/p>\n<h2>Manage Multiple Prepayment for Purchase Orders Using Installments with Versa Cloud ERP<\/h2>\n<p><span style=\"font-weight: 400;\">Sometimes you have an arrangement with a supplier where you are required to make multiple payments (before products are shipped) for a purchase order based on milestones or a schedule. This is supported via Payment Installments in Versa. The installments would be tied to your purchase orders.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can follow the steps below to set up:\u00a0<\/span><\/p>\n<h3>#1 Create a Payment Term<\/h3>\n<p><span style=\"font-weight: 400;\">Firstly business will create a payment term from Setup Menu &gt; Payment terms, and make sure to check the option to include installments. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Enter the Installments you have in terms of % for each payment. You can have as many as you like as long as the total percentage adds up to 100.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Followed up with creating a purchase order and choose the term you just created. Enter the purchase order as you normally would.<\/span><\/p>\n<p><b>[widget id=&#8221;custom_html-34&#8243;]<\/b><\/p>\n<h3>#2 Create a New Bill for the Supplier on the Purchase Order<\/h3>\n<p><span style=\"font-weight: 400;\"> Create a new bill for the supplier on the PO. After that, choose the PO item under the Prepayments for Products on P\/O to create a new bill item. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The system would choose the first installment for you automatically. Enter the quantity you are prepaying. The unit price is locked and must be the same as the PO. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the Prepayment products on the P\/O option are not visible, go to the Setup menu and feature settings. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check the option Show Purchase Order Item Prepayment and Save new setting to make the prepayment option visible.<\/span><\/p>\n<p><b>[widget id=&#8221;custom_html-34&#8243;]<\/b><\/p>\n<h3>#3 Receiving the Products from Supppliers<\/h3>\n<p><span style=\"font-weight: 400;\"> Depending on your arrangement with the supplier, if you receive products after making the first installment, receive the product as you normally would. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the received product must be paid (the prepayment only covers some of the received products). Follow up and create a new bill on the supplier and choose the PO under Link to shipment receipts to create a new bill item. The system would calculate the portion that needs to be paid for you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> If you need to make an additional installment payment before the product would ship, create a new bill and choose the option Prepayments for Products on P\/O to create a new bill item again. The system would follow the installment set up in the payment term to determine the % to apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The system tracks the amount of prepayment on a PO vs value already received so if you have already paid for all products being received, there is no need to create a bill to pay for a shipment.<\/span><\/p>\n<p><b>[widget id=&#8221;custom_html-34&#8243;]<\/b><\/p>\n<h3><strong>Let Versa Cloud ERP handle the Prepayment for purchase orders.<\/strong><\/h3>\n<p><strong>Do Business on the Move!\u00a0<\/strong><\/p>\n<p><b>[widget id=&#8221;custom_html-25&#8243;]<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Make your businesses hassle-free and cut the heavyweights <a href=\"https:\/\/www.versaclouderp.com\/versa-cloud-erp-tour\/\"><strong>sign up for the Versa Cloud ERP today!!<\/strong><\/a><\/span><\/p>\n<p><strong>Join our <a href=\"https:\/\/www.versaclouderp.com\/pricing#Compare-eCommerce-Edition-&amp;-Standard-Edition\">Versa<\/a> Community and be Future-ready with us.\u00a0<\/strong><\/p>\n<p><b>[widget id=&#8221;custom_html-30&#8243;]<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"On typical days, businesses deal with the inflow and outflow of raw materials, finished goods, and cash. Multiple&hellip;","protected":false},"author":2,"featured_media":873,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","vcerp_display_header_overlay":false,"vcerp_singular_sidebar":"","vcerp_page_header_type":"","footnotes":""},"categories":[17],"tags":[284,33,20,876,136,34,878,102,185,43,427],"howto-business-roles":[],"howto-workflows":[],"use-case-problems":[],"class_list":["post-301","post","type-post","status-publish","format-standard","has-post-thumbnail","category-erp-for-inventory-driven-businesses","tag-cloud-based","tag-cloud-based-erp","tag-cloud-erp","tag-cloud-erp-for-ecommerce","tag-enterprise-resource-planning","tag-erp","tag-erp-for-ecommerce","tag-erp-solution","tag-small-business","tag-smb","tag-smbs","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Versa De-Coded: Prepayment for Purchase Orders - Versa Cloud ERP - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.versaclouderp.com\/blog\/versa-de-coded-prepayment-for-purchase-orders\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Versa De-Coded: Prepayment for Purchase Orders - Versa Cloud ERP - Blog\" \/>\n<meta property=\"og:description\" content=\"On typical days, businesses deal with the inflow and outflow of raw materials, finished goods, and cash. Multiple&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.versaclouderp.com\/blog\/versa-de-coded-prepayment-for-purchase-orders\/\" \/>\n<meta property=\"og:site_name\" content=\"Versa Cloud ERP - Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/versaclouderp\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-22T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.versaclouderp.com\/blog\/wp-content\/uploads\/2024\/11\/versa-cnv-bt-2-15nv-83.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sanjana Gujral\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@versaclouderp\" \/>\n<meta name=\"twitter:site\" content=\"@versaclouderp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sanjana Gujral\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/\"},\"author\":{\"name\":\"Sanjana Gujral\",\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/#\\\/schema\\\/person\\\/0ab2da39b28bdf5f47b2d08ae86841de\"},\"headline\":\"Versa De-Coded: Prepayment for Purchase Orders\",\"datePublished\":\"2021-12-22T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/\"},\"wordCount\":520,\"publisher\":{\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/versa-cnv-bt-2-15nv-83.jpg\",\"keywords\":[\"cloud based\",\"cloud based erp\",\"Cloud ERP\",\"cloud erp for ecommerce\",\"enterprise resource planning\",\"ERP\",\"erp for ecommerce\",\"erp solution\",\"small business\",\"SMB\",\"smb\u2019s\"],\"articleSection\":[\"ERP for Inventory Driven Businesses\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/\",\"url\":\"https:\\\/\\\/www.versaclouderp.com\\\/blog\\\/versa-de-coded-prepayment-for-purchase-orders\\\/\",\"name\":\"Versa De-Coded: Prepayment for Purchase Orders - 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