How to Include Customer Deposit on a Sales Invoice in Dynamics 365

A customer recently sent us an inquiry on how to display a customer deposit on non-project invoices and we thought it would be beneficial to share this use case with the Dynamics community.

Here is the user scenario we are dealing with.  The material sales division creates non-project invoices from sales orders.  Two loads were delivered to a customer for which they have paid a down payment of $20,000 ($10,000 per load). Accounts Receivable department has been instructed that the invoice should display the full charge for the loads ($25,000 each) with a deduction under each charge for the $10,000 down payment for each load.

The additional requirement is to setup posting the prepayment to a separate non-revenue account.

There are two pre-requisites for the procedure:

1) Create a Prepayment posting profile with the Summary account as Customer deposit or Unearned income: Accounts receivable > Setup > Customer posting profiles:

customer posting profiles

2) Navigate to Accounts receivable > Setup > Accounts receivable parameters > Ledger and sales tax to select the Posting profile with prepayment journal voucher:

accounts receivable parameters

Then follow the steps to create a prepayment:

1) Select the company.

2) Navigate to Accounts receivable > Orders > Sales orders > All sales orders to verify the sales order information and the customer for which the invoice is to be created.

3) Navigate to Accounts receivable > Payments > Payment journal. Create a new journal. Open the Lines form. Add a new line for the deposit amount with a reference to a Sales order line in the description field:

customer payments

4) Specify the offset to the Bank or a Ledger account.

5) On the Payment tab, check the Prepayment journal voucher box. The Posting profile will change to prepay:

prepay journal voucher

6) Enter all other fields if needed (Document number and date, Method of payment, Due date, etc.)

7) Enter more lines on the Payment journal if needed.

8) Validate and post the Payment journal.

9) Review the transactions posted to the GL account 212160:

voucher transactions

10) Navigate to Accounts receivable > Common > Sales orders > All sales orders to invoice the sales order. Open the Invoice tab on the top action pane:

all sales orders

11) Click on the Settle > Open transactions. The Settle transactions form opens, the prepayment lines are shown:

settle transactions

12) Mark the transactions for settlement. The confirmation question pops up for each line:

settle transaction confirmation

13) Click yes and OK on the Settle transactions form.

14) Generate an invoice for the Sales order with the Quantity = All on the Posting invoice form. The Print invoice box is checked:

posting invoice

15)      The postings to the GL account 212160 are reversed:

voucher transactions final

16)      The Prepayments are printed on the Invoice report under the invoice lines.

 

Yet another fun day in the world of Dynamics 365 for Finance and Operations

 

 

 

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