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Sales Order Prepayments

Updated: Aug 10, 2023

D365 F&SC Tip of the Day: In Microsoft D365 Finance and Supply Chain (D365 F&SC), since Microsoft deprecated the Prepayment feature on Sales Orders, we can take a different approach to accomplish the business need. To learn how to process Sales Order Prepayments, see the guide below.



Since Microsoft deprecated the Prepayment feature on Sales Orders, we can take a different approach to accomplish the business need.




Create the Sales Order

Confirm the Sales Order

Print the Proforma Invoice and send the Proforma Invoice to the customer. Ask the customer to use the Sales Order number as the Invoice number.










Create a Customer Payment Journal by going to Account Receivable > Payments > Customer Payment Journal > make sure you put the Sales Order number in the Payment Reference field.




On the Payment tab, set the Prepayment Journal Voucher field to Yes.

Note: If you get the Error: Prepayment must be created in a journal where amount is including sales tax, you need to set the Sales Tax on Prepayment Journal Voucher field to No in Accounts Receivable Parameters.





Go back to the Sales Order and apply the Prepayment to the order by going to Invoice > Settle > Open Transactions.




Since the Sales Order number was entered into the Payment Reference field on the Payment Journal, the payment will automatically be displayed in the Settle Transactions screen. Place a checkmark under the Mark column > click Yes to the pop-up > click OK. This tells D365 to automatically apply the prepayment to the invoice when the Sales Order Invoice is posted.





After posting the invoice, when you look at the customer transactions, you’ll see that the prepayment was automatically settled to the invoice.






2 comments

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Guest
Sep 01, 2023
Rated 4 out of 5 stars.

Hi Alicia,

thank you for this helpful explanation.

I tested it in my Contoso-Environment today and get the result, that every prepayment independent from the entry in the payment reference will be shown in the sales order under Invoice-Open-Settle Transaction.

Do you have an idea how I can link the prepayment with a special sales order? Or what can I do that only the linked prepayment will be shown in the sales order.

Thank you for your help

Best wishes

Karin


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Unknown member
Oct 30, 2023
Replying to

Did you do his step: Create a Customer Payment Journal by going to Account Receivable > Payments > Customer Payment Journal > make sure you put the Sales Order number in the Payment Reference field.

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