The posting controls we set up are IP16 and IP18. We set up IP16 with the Liability (AP)and IP18 with the Prepaid account. When we ran through a full test the of the Payment Schedule process beginning to end of paying the down payment, the prepaid account was zero and the down payment ended up in the liability account. This leads me to believe that I might have the posting controls set up backwards. How does everyone else have these two posting controls set up?
Hello,
IP16 and IP18 are used to post supplier advance invoice - and your understanding is correct, IP16 is AP liability and IP18 - Advance (Prepayment) requested.
However, when advance invoice is paid, these entries are reversed in payment voucher and down payment amount is posted using PP37 posting type. This PP37 posting should be directed to Prepaid account similar to one set for IP18 (but I would not use same account for IP16 and IP18 - IP18 is not an IP open item, while PP37 is).
I hope it helps
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