Manage advance payments

When products are procured under an account sale accounting method, it is common for the trading company to make an initial payment to the vendor before actually selling the products to customers. This provides cash flow to the vendor and strengthens the business relationship between trading partners. With the functionality of the Aptean Grower Return extension, advance payments can be registered in two ways:

• Seasonal – Payments are made per season for the entire set of purchase orders yet to be received. As the name suggests, seasonal advance payments are disbursed at the beginning of a trading cycle/season and entail a significant sum.
• Per Purchase Order – Advance payments are made for each purchase order, usually upon registration or receipt of the order.

To create seasonal advance payment

1. Select the Search icon , enter Create Advance Payment, and then choose the related link. 

2. In the Advance Payment Wizard, select Next.

3. Enter the vendor details to create an advance payment.

   Field	Description
   Vendor No.	Specifies the number of the vendor from whom the items are/will be bought and will receive the advance payment.
   Vendor Name	Specifies the name of the vendor from whom the items are/will be bought and will receive the advance payment.
   Pay To Vendor No.	Specifies the number of the vendor who will receive the advance payment.
   Pay To Vendor Name	Specifies the name of the vendor who will receive the advance payment.
   Currency Code	Specifies the currency code for the amounts on the advance payment. The currency code is inherited from the selected pay-to vendor.
   Payment Terms Code	Specifies a formula that is used to calculate the payment due date, payment discount date, and payment discount amount for this advance payment.
   Payment Terms Description	Specifies the descriptions of the payment terms based on the payment terms code.

   Note

   The Vendor No., Pay To Vendor No., and Payment Terms Code fields must be selected manually, while the remaining fields will be updated automatically.

4. Select Next.

5. In the Advance Payment Type field, select Seasonal and then select Next.

6. In the Vendor Invoice No. field, enter the invoice number that is received from the vendor.

   Note

   The Vendor Invoice No. is automatically populated based on the configuration performed on the Prepayment FastTab of the Grower Return Setup page. For more information, see Grower Return Setup.

7. In the Advance Payment Excl. VAT field, enter the amount you want to pay in advance, and then select Next.

   Performing the above steps will automatically convert your advance payment into your local currency.

   A prompt message appears, and you can review the entered vendor details and payment information.

8. Select Finish.

9. Select Yes in the message.

   Based on the selected value in the Advance Payment Invoice Posting field on the Grower Return Setup page, either a posted or unposted purchase invoice for seasonal payment is created from the Grower Returns Prepayment Wizard.

To create per purchase order advance payment

1. In the Advance Prepayment Wizard, in the Advance Payment Type field, select the Per Purchase Order as the type of advance payment and then select Next.
2. In the Purchase Order No. field, select the purchase order number for which an advance payment must be posted.

3. Select Next.
4. In the Vendor Invoice No. field, enter the invoice number that is received from the vendor.

5. In the Advance Payment Excl. VAT field, enter the amount you want to pay in advance. Performing the above steps will automatically update the Total Advance Payment Excl. VAT field.

6. In the Purchase Invoice lines, you can edit the payment for each purchase line and then select Next.

   A prompt message appears, and you can review the entered vendor details and payment information.

7. Select Finish.

8. Select Yes in the message.

   Based on the selected value in the Advance Payment Invoice Posting field on the Grower Return Setup page, either a posted or unposted purchase invoice for seasonal payment is created from the Grower Returns Prepayment Wizard.