Tag Archive for: prepayment pitfalls

Potential Prepayment Pitfalls (and how to avoid them)

pitfallsSYSPRO customers already know that it is now possible to handle supplier prepayments in SYSPRO. And if you have a small, manageable number of prepayments, you will no doubt be able to control the whole process manually, providing you have a reliable resource and time available. But there are potential pitfalls to be aware of that you can mitigate by implementing DataRapt’s Supplier Prepayments system. This is especially true if you have more complex requirements.

When handling prepayments manually:

  1. You will have to put in place a system to keep track of the prepayments you have processed.
  2. You will need to take care to ensure that the prepayment is posted to an appropriate prepayment control account.
  3. You will also need to make sure that when you receive an invoice from the supplier, that you match it up to the prepayment so that it isn’t paid twice by mistake.

 

DataRapt’s Supplier Prepayments system lets you have control over your prepayments by:

  1. Helping to identify your prepayment invoices with dedicated numbering.
  2. Letting you link your prepayment to the purchase order or registered invoice that initiated it.
  3. Helping you to make sure that you don’t overpay.
  4. Ensuring that you post the accounting transactions to the correct general ledger accounts.
  5. Providing the facility to ensure that the prepayment and supplier’s invoice are matched up.
  6. Providing a dedicated Prepayments Query.

 

The following table illustrates the functionality differences between the two systems:

Feature SYSPRO DataRapt
Record prepayment using dummy invoice
Formatting options available for dummy invoice numbering for easy identification
Optionally link the prepayment to a:
 – Purchase order
 – Purchase order line
 – Registered invoice
Only process a prepayment when defined conditions are true [More info]
Process payment as a:
 –  Manual check
 – System check
 – EFT payment
Prepayment control account automatically assigned by:
 – Branch
 – Currency
Ensure the prepayment value does not exceed the net amount of the linked purchase order or registered invoice
When capturing or approving the supplier’s invoice the product can prompt you to match it to prepayments
If you have matched an invoice to a prepayment in error, you can unmatch it in one step
Dedicated prepayments query [More info]

Would you like to implement DataRapt’s Supplier Prepayments but are concerned about what will happen to any existing prepayments in your system? Well, DataRapt has a utility to transfer any of your existing negative balance invoices to the DataRapt Supplier Prepayments system.

To learn more about the system, please visit our product page or watch the video here:

Footnotes

 

[i] You can define triggers to prompt you to add a prepayment when adding a purchase order or registering an invoice.

At a basic level, the triggers will prompt you to add a prepayment every time you add a purchase order or register an invoice. But you can also define additional filters so that you are only prompted to add a prepayment when certain criteria are true. The filters that you can apply:

  • A list of suppliers
  • A list of supplier branches
  • A list of supplier currencies
  • A list of supplier classes
  • A list of invoice terms
  • A list of purchase order types

 

[ii] DataRapt provides a comprehensive prepayment query. This includes filters by financial period, branch, supplier and prepayment status.

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