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Hi,

 

We are looking at using advance customer invoices. The way we would like it to work is as follows:

  • Advance invoice issued upon customer order creation and release
  • Following invoices are issued as per the regular process but the amount from the advance invoice is deducted (if advance invoice is 10% of the CO value, 10% is deducted from the amount of subsequent invoices).

Advance invoice creation is straightforward. However, we are not able to find a way for subsequent invoices to take into account the amount already paid.

 

Practical example: I can request advance payment (via issuance of advance invoice) of 10% of CO value. The rest will be invoiced after final delivery/completion of work. Assuming a CO of 1,000

  • Advance invoice: 100
  • Final invoice: 1,000 - 100

The amount that is deducted should appear on the invoice.

Thanks in advance (no pun intended...)

Hi,

 

I am facing the same challenge.  Following thread to learn how this can be solved.

 

Thanks.

Following since we have the same issue.

Hi, Is there any solutions / answers for this topic?

We have a complicated workaround that isn’t recommended due to the many manual steps:

We need to “hold” the payments towards the AD until we know the amount of the Prepayment that should be applied to the next delivery invoice.  When the customer makes their entire upfront Prepayment, a separate Payment on Account (CUPOA) will be used as the holding place.

When the amount of the Prepayment portion is known for the next delivery invoice, i.e. the next 10%, the CUPOA will be applied to the AD in that amount using a Customer Offset. This requires manual intervention before the next Customer Invoice is “printed”/posted.

Here is the process:

  1. Enter Customer Order.  This typically has multiple order lines to be delivered in future shipments.
  2. Create Adv Invoice from Customer Order screen for whatever the total prepayment amount is. RMB in Customer Order header and select Create Advance Invoice.
  3. This is the separate CUPOA. Create Mixed Payment for a Payment on Account for that customer equal to the prepayment amount (not matched to the previously created Advance Invoice).  You enter only customer ID and amount which is equal to the amount of their prepayment.  You will have an ADV AR item from step 2 and this CUPOA item on the customer’s ledger after this.
  4. Release Order line 1 and Deliver/Close Shipment.  Do not create invoice yet.
  5. Create Customer Offset to apply portion of CUPOA to ADV AR.  For example, if the order value is $1000 and you wish to apply 10% of the prepayment, create the Offset for $100.
  • First, enter CUPOA line (Series ID, Inv # and change amount to apply to next invoice as negative amount)
  • Next, enter AD Inv line (Series ID, Inv # and change amount as positive amount)
  • Remaining amount should be $0.
  • System automatically creates a CUPIA to apply the prepayment to the next delivery invoice.
  1. 6. Continued from Step 5.  Create Customer Invoice for 1st Shipment. System automatically applies the prepayment (CUPIA) to the Invoice.
  2. 7. Repeat steps 4 - 6 for subsequent shipments until prepayment is consumed.
  3. In the customer ledger, CUPOA should always = AD Invoice amount.  This is the remaining Prepayment available for this specific Customer Order since the Advance Invoice is connected to that specific customer order.

Again, this is usually too complicated and too manual to recommend but it is a way to track their remaining Prepayment as a CUPOA.  Hopefully IFS comes up with a better solution.

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