Pre-payments in ProcureDesk allow you to record and manage advance payments made against purchase orders (POs). This ensures that when invoices arrive later, the system properly accounts for amounts already paid in advance.
🔹 When to Use Prepayments
When you must pay a supplier in advance before receiving the invoice.
When an invoice arrives for the full amount, but you’ve already made a partial pre-payment.
🔹 How to Record a Pre-payment
Open the Purchase Order (PO):
Navigate to the PO against which you need to record a pre-payment.
Create Pre-payment:
Go to Actions → Create Pre-payment.
Enter Prepayment Details:
Pre-payment Number: Use the supplier’s reference number, the order number, or any identifier.
Additional Details: Enter any notes under the Pre-payment Details box.
Adjust Line Items:
The system displays all PO line items by default.
Update line(s) to reflect the amount being prepaid.
Example: For a $100 item, if you’re paying $50 upfront, edit the amount to $50.
Chart of Account:
Map the payment to a Prepaid Expense account or as required by your accounting setup.
Save & Submit:
Save the prepayment.
Submit the prepayment for processing.
🔹 Applying Pre-payments to Invoices
Create Invoice Against the PO:
When you generate an invoice linked to the order, ProcureDesk automatically checks for existing pre-payments.
Assign Prepayment:
Apply the pre-payment amount to the invoice.
Balance Adjustment:
Example:
Invoice total: $100
Prepayment: $50
Remaining payable balance: $50
Process Invoice Normally:
Pay the reduced balance just like any other invoice.
🔹 Example Workflow
PO created for $100
Prepayment recorded for $50
Invoice arrives for $100
Apply $50 prepayment → Pay only $50 balance
✅ Key Takeaways
Pre-payments reduce manual adjustments when invoices are received.
Always record them against the original purchase order.
ProcureDesk ensures transparency by showing outstanding balances after applying prepayments.