{"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":"

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

Manage Multiple Prepayment for Purchase Orders Using Installments with Versa Cloud ERP<\/h2>\n

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

You can follow the steps below to set up:\u00a0<\/span><\/p>\n

#1 Create a Payment Term<\/h3>\n

Firstly business will create a payment term from Setup Menu > Payment terms, and make sure to check the option to include installments. <\/span><\/p>\n

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

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

[widget id=”custom_html-34″]<\/b><\/p>\n

#2 Create a New Bill for the Supplier on the Purchase Order<\/h3>\n

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

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

If the Prepayment products on the P\/O option are not visible, go to the Setup menu and feature settings. <\/span><\/p>\n

Check the option Show Purchase Order Item Prepayment and Save new setting to make the prepayment option visible.<\/span><\/p>\n

[widget id=”custom_html-34″]<\/b><\/p>\n

#3 Receiving the Products from Supppliers<\/h3>\n

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

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

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

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

[widget id=”custom_html-34″]<\/b><\/p>\n

Let Versa Cloud ERP handle the Prepayment for purchase orders.<\/strong><\/h3>\n

Do Business on the Move!\u00a0<\/strong><\/p>\n

[widget id=”custom_html-25″]<\/b><\/p>\n

Make your businesses hassle-free and cut the heavyweights sign up for the Versa Cloud ERP today!!<\/strong><\/a><\/span><\/p>\n

Join our Versa<\/a> Community and be Future-ready with us.\u00a0<\/strong><\/p>\n

[widget id=”custom_html-30″]<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"On typical days, businesses deal with the inflow and outflow of raw materials, finished goods, and cash. 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