Are you thinking of switching to Prepayment invoices (GESPREPI) to handle your prepayments? Have you even heard about it? Let’s take a look at Prepayment invoices and some common questions.

What is the Prepayment invoice function?

• This function was introduced in 2021 R3 (v12.0.27). The Release notes describe the new function as follows:

Create and manage prepayments for sales orders

You can create, manage, and post prepayment invoices linked to a sales order in the Prepayment invoices management function (GESPREPI). There can only be one contract for each sales order line. For a standard sales invoice, you can link the invoice to the Prepayment management function by setting the PREFUN – Prepayment management parameter (TC chapter, INV group) to Prepayment invoices for the site.

Payments are posted to an automatic journal until the contract is settled. The final invoice is a standard sales invoice and when it is posted, the prepayment amounts are reversed so that the open items are settled properly. This closed the prepayment contract.

• Where do you find the release notes? In the Online help center under the What’s new tab. The Release Notes for the current version plus all the v12 patch levels back to patch 18 are available.

How do I activate Prepayment Invoices?

• In Activity codes (GESACV) under Development, Data and parameters, Development setup, the code PREPM, must be activated.
  • After making PREPM active, execute a Dictionary Validation (VALDICO). Validation function is found under Development, Dictionary, Validations, Dictionary.

• There are Parameter values to set under Setup, General parameters.
  • Head to Chapter TC / Group INV to set Parameter (Prepayment management) PREFUN to “Prepayment invoices.” It can be set on the company level or on the folder level. I am setting only company NA10 to “Prepayment invoices.”

Why is Prepayment grayed out in Sales Order (GESSOH) entry?

• Once the PREFUN parameter is set to “Prepayment invoices,” the Prepayment option in Sales order (GESSOH) entry is grayed out for that company. Only one method of handling prepayments can be used per company. You will be using Prepayment invoice (GESPREPI) on this company.

For site DE012's company, I left the PREFUN parameter value as “Prepayment.” Therefore, the Prepayment option is still available in the right box.

Why can’t I select the Prepayment Payment term for my Sales Order?

The Payment term (GESTPT) was created under Common data, BP tables. It isn’t available for the Sales orders in the drop down menu when the associated company has the Payment type equal to “Prepayment.” When the company has its PREFUN parameter set to “Prepayment invoices,” the Payment type must be valued as “Open items.”

How do I activate the Prepayment invoice button in Prepayment invoice management?

I have selected the Sales order, but the Prepayment invoice button isn’t activated.

The Prepayment invoice button isn’t activated until the Invoice date, Prepayment percentage, and Account number are entered and the transaction saved.

I hope this makes Prepayment invoices management  easier to setup.

Take care my X3 friends. Stay safe!