PURCHASE INVOICES AND PREPAYMENTS

If you are not yet familiar with how prepayments are handled in Directo, first read the prepayments guide.

Which prepayments can be used on a purchase invoice? A number of system settings determine whether a prepayment can be used on a purchase invoice. Be sure to review them so that prepayments are used on documents as intended.

In general, prepayments that can be used on a purchase invoice are:

• linked to the same supplier
• linked via the purchase order
• in the same currency
• with a sufficient balance
• created before the invoice date
• linked via object levels (system setting)

When creating purchase invoices from a purchase order, keep in mind that the supplier's prepayments must also be linked to the same purchase order. If the prepayment payment or prepayment invoice is not linked to the purchase order but the purchase invoice is, the prepayment cannot be used on the purchase invoice.

Prepayments are used in the TOTALS section of the purchase invoice in three different ways:

• the Prepayment field
• the icon that opens the prepayment selection window
• the Use prepayment button

Click the Use prepayment button in the TOTALS section of the purchase invoice.

The button automatically selects the correct prepayments (according to the rules in the system settings) and enters the values either only in the Prepayment field (prepayment ID) or also on the invoice rows (prepayment item).

• The balances of prepayment ID prepayments are entered in the Prepayment field as a total amount incl. VAT, using the FIFO method
• The balances of prepayment items are entered on the invoice rows with a minus sign, excl. VAT

If the system setting “Supplier prepayment is used when confirming purchase invoice” is set to Yes or Only with purchase order, the prepayment ID is entered in the Prepayment field automatically.

Click the selection icon inside the Prepayment field to open a window where you can manually select the prepayments you want to use on the purchase invoice. Clicking Insert prepayment enters the values either only in the Prepayment field or also on the purchase invoice rows.

• The balances of prepayment ID prepayments are entered in the Prepayment field as a total amount incl. VAT, using the FIFO method
• The balances of prepayment items are entered on the purchase invoice rows with a minus sign, excl. VAT

Enter the prepayment amount manually in the Prepayment field and click Use prepayment. If the prepayment balance is not sufficient, the amount is reduced automatically.

If an amount has been entered in the Prepayment field and you open the window, the Select sum column shows which prepayments were used on the purchase invoice and how much of each.

The Use prepayment button always enters the largest possible prepayment amount, so that the balance left to pay on the purchase invoice is as small as possible. A smaller amount entered earlier by the user in the Prepayment field is replaced. If you want to use a prepayment partially, select the desired amount in the prepayment window.

If a prepayment has no link of a certain kind, the corresponding column is not shown in the window. For example, if there is no project or object, that column is not shown. Below the window there is a quick link to the purchase ledger.

• Date - prepayment date
• Document - type and number of the prepayment document
  • PI - purchase invoice
  • P - payment
• Comment - comment of the prepayment document
• Object - object of the prepayment document; a tooltip is shown when you move the cursor over the field

• Project - project of the prepayment document
• SN and preID - identify different types of prepayment.
  • If the prepayment was created by a payment that is unlinked or linked to a purchase order, a prepayment ID prepayment is created, which can be used directly on the purchase invoice and on a payment.
  • If the prepayment was created through a purchase invoice (a prepayment item must have been used on the purchase invoice), a prepayment SN code is created through the purchase invoice row. A prepayment item can only be used on purchase invoice rows.
• VAT rate (code) - VAT rate and code of the prepayment
• Sum with VAT - prepayment amount including VAT
• Used - shows how much of the prepayment ID has already been used
• Balance with VAT - prepayment balance including VAT
• Select sum - if an amount has been entered in the Prepayment field on the purchase invoice, the window shows how much of the prepayment is used. The amount can be changed manually. If the amount is selected only in the prepayment window, you can enter it manually or, to use the entire prepayment balance, double-click or click the fx button.

If the prepayment is in a foreign currency, the window also shows the currency of the prepayment document and the exchange rate on the date the prepayment was created.

On a confirmed purchase invoice, you can open the window with Open prepayments. It shows the status of prepayments after the purchase invoice was confirmed. NB! This balance may not match the prepayment balance in the purchase ledger, because the ledger may also contain prepayments in other currencies or prepayments that could not be used in the context of this purchase invoice (another object level, etc.).

To create a purchase prepayment invoice, a purchase prepayment item must first be created with the following settings:

• Class = ETTEM (prepayment class)
• Type = Plain/service
• Gift cert. = Prepayment
• Default Qty. = 1

On the purchase invoice, select a suitable purchase prepayment item on the row:

Purchase ledger before the purchase prepayment invoice is paid:

Purchase ledger after the purchase prepayment invoice is paid: