Settling prepayments

This module lets you select and settle posted sales prepayments on sales invoices and credit memos.

❓ Introduction

The module keeps settlements within the available prepayment and document amounts. It also validates the currency, payment status, and VAT posting groups.

🔍 How settlement works

The product filters entries by the document currency and a nonzero remaining amount. When Check Prepayment when Posting is enabled, only customer-paid prepayments are included. You select the prepayments and amounts settled on the final document.

🚀 How to enable the module

The module has no separate switch. Complete the prepayment settings described in Configuration, then post a prepayment invoice from a sales order.

📋 Selecting prepayments

  1. Open a Sales Order or sales document containing order lines.
  2. Select Prepayment Invoice Settlement.
  3. Review the currency, payment status, remaining amount, and maximum amount to settle.
  4. Enter the Amount to Settle or use the maximum amount field.
  5. Confirm the selection.

➖ Settlement lines

The product creates or updates negative settlement lines. A line has quantity -1, the account and VAT posting groups from the posted prepayment invoice, and the invoice and prepayment ledger entry numbers.

After you post the document, the product records the settlement in the history and reduces the remaining amount. For a domestic document, it can adjust the VAT difference when settling the full remaining amount.

💱 Exchange-rate differences

When the settling document is in a foreign currency and has a different currency factor than the settled prepayment, the product automatically calculates the difference for the settlement amount. During posting, it creates a system journal entry with the exchange-rate difference description and dimensions from the settlement line.

  • A positive difference is posted to the currency's Realized Gains Acc..
  • A negative difference is posted to the currency's Realized Losses Acc..
  • A difference can arise on both a sales invoice and a credit memo.
  • No exchange-rate difference is created for the local currency.

🧮 Settlement validations

Settlement is blocked when it:

  • exceeds the remaining prepayment amount;
  • exceeds the amount available on the target document;
  • has a currency different from the document currency;
  • requires a payment that has not been recorded;
  • has an entered amount that differs from the amount suggested by the product, except for 0.

Before posting, the product also checks that prepayments have been settled at least up to the value that can be invoiced.

🔧 Credit memos

A posted credit memo can settle a prepayment. The product validates the currency, VAT posting groups, and remaining amount. You cannot process a parallel correction of the same prepayment on another unposted document.

In the ITI integration, the credit memo receives the prepayment correction marker and prepayment order number. One credit memo can settle prepayments from only one sales order.

🛡️ Document protection

A prepayment cannot be settled on several documents at the same time. The system also blocks a parallel correction of the same prepayment on another unposted document or a correction that exceeds the remaining amount for the relevant VAT groups. Correcting one prepayment does not change other prepayments or their settlement documents.