Pre-payments

  • Release version: Australia
  • Updated March 12, 2026
  • 1 minute to read

    • A prepayment is the amount paid for services before their receipt or invoiced due date. When an invoice is issued for a pre-payment, it is against the pre-paid account. During the defined pre-paid period, the amount is amortized accordingly against the capex or expense account.

    The Pre-payments required field on the purchase line indicates if pre-payments can be credited to the supplier against a purchase. Selecting this field also results in the display of the Pre-payments related list on the purchase line. The pre-payment information is carried over to a purchase order line whenever a purchase order is created.

    The following are the key fields of a prepayment:

    Table 1. Pre-payment fields
    Field Description
    Number System-generated unique identifier of the pre-payment.
    Contract Contract to which this pre-payment is associated.
    Purchase line The purchase line associated with this pre-payment. This field is auto-populated when created from the pre-payments related list on purchase line.
    Purchase requisition The purchase requisition associated with this pre-payment. This field is referenced from the purchase line.
    Purchase order line The purchase order for which pre-payments are authorized up to the specified amount.

    This field is auto-populated when a purchase order line is created from the purchase line.
    Purchase order The purchase order associated with this pre-payment. This field is referenced from the purchase order line.
    Authorized by The user who authorizes this pre-payment. This field is populated based on the user who creates the pre-payment.
    Authorized on The date on which the pre-payment is authorized.
    Accounting Details
    Amount Total purchase line amount.
    Currency code Currency code of the total line amount.
    Pre-pay on Date on which the specified amount is pre-paid.
    Pre-pay by The type of pre-payment. For example, Amount or Percentage.
    Pre-payment percentage The percentage of the total line amount for the pre-payment.

    This field is visible only if the pre-payment type is set to Percentage.
    Pre-payment amount The portion of the total line amount for the pre-payment.
    Pre-paid period start The start date of the pre-payment period, from which the pre-payments start.
    Pre-paid period end The end date of the pre-payment period, after which no pre-payments are made.

    Multiple pre-payments related to one line can be made. For example, you can pre-pay 50% of the total line amount on X date and another 50% on Y date. The total of the pre-payment amounts must not exceed the line amount.