Create advance payments for pooling settlements

You can create advance payments for settlements with the Accounting Method field value set to Pooling directly from the Settlement page. This makes it possible to allocate advance payments for multiple vendors and various scenarios, for example, if there is a pooling settlement for five vendors for a specific date range or if there is a pooling settlement for a specific item.

To create an advance payment for a pooling settlement, follow these steps:

1. On the Settlement page, on the action bar, select Advance Payment Allocation > Create Advance Payment.
   The Create Advance Payment wizard opens.
2. Select Next.
3. In the Advance Payment Type field, select any of the following options:
   • Seasonal: The advance payments are made per season for all purchase orders and vendors within the settlement. Even when the advance payment is created from the specific settlement it can be seen and used in any settlement, as long as the vendor is a part of it and the amount has not already been fully allocated.
   • Per Purchase Order: The advance payments are made per purchase order for any or multiple purchase orders within this settlement. As opposed to seasonal, the advance payment is automatically allocated to any of the settlements the purchase order is populated in.
   • Per Purchase Order Line: The advance payments are made per purchase order line for any or multiple purchase order lines within this settlement. As opposed to seasonal, the advance payment is automatically allocated to any of the settlements the purchase order is populated in.

4. Select Next.
   The system displays information about all vendors in the settlement in the following fields:

   Field	Description
   Vendor No.	Specifies the number of the buy-from vendor who is to receive the advance payment.
   Vendor Name	Specifies the name of the buy-from vendor who is to receive the advance payment.
   Pay To Vendor No.	Specifies the number of the pay-to vendor who is to receive the advance payment.
   Pay To Vendor Name	Specifies the name of the pay-to vendor who is to receive the advance payment.
   Currency Code	Specifies the currency code associated with the advance payment.
   Payment Terms Code	Specifies a formula that calculates the payment due date, payment discount date, and payment discount amount used in this advance payment.
   Payment Terms Description	Specifies the description of the selected payment terms code.
   Source Order No.	Specifies the associated source document number. This field value is visible only when the Advance Payment Type field value is set to Per Purchase Order or Per Purchase Order Line.
   Source Order Line No.	Specifies the line number of the associated source document. This field value is visible only when the Advance Payment Type field value is set to Per Purchase Order Line.
   Vendor Invoice No.	Specifies the invoice number of the vendor who is to receive the advance payment.
   Prices Including VAT	Specifies whether the prices of the items on the purchase invoice include VAT.
   Amount to Settle	Specifies the amount to settle associated with the settlement.
   Amount to Settle (LCY)	Specifies the amount to settle associated with the settlement, expressed in local currency.

5. In the Advance Payment Amount field, enter the advance amount that you want to pay to the vendor in the associated currency.
   The system updates the Advance Payment Amount (LCY) field value with the advance payment in the local currency.

6. Select Next.
   The system displays a summary of all the information.

7. Select Finish after reviewing all the information.
   The system creates advance purchase invoices (one invoice per combination of the pay-to vendor and currency code).

When you post the advance purchase invoices and the settlement is recalculated, the system updates the Advance Payment Allocations page. For more information, see View and define advance payments for pooling settlements.