Sometimes you have an arrangement with a supplier where you are required to make multiple payments (before products are shipped) for a purchase order based on milestones or a schedule. This is supported via Payment Installments in Versa. The installments would be tied to your purchase orders.
You can follow the steps below to set up.
- Create a payment term (from Setup Menu, Company, Payment terms) and make sure to check the option Has Installments. Enter the Installments you have in terms of % for each payment. You can have as many as you like as long as the total percentage adds up to 100.
- Create a purchase order and choose the term you just created. Enter the purchase order as you normally would.
- Create a new bill for the supplier on the PO and choose the PO item under the Prepayments for Products on P/O to create a new bill item. The system would choose the first installment for you automatically. Enter the quantity you are prepaying. The unit price is locked and must be the same as the PO. If the Prepayment products on the P/O option are not visible, go to the Setup menu, feature settings, Bill Item Form, Check the option Show Purchase Order Item Prepayment and Save new setting to make prepayment option visible.
- Depending on your arrangement with the supplier, if you receive products after making the first installment, receive the product as you normally would. If the received product must be paid (the prepayment only covers some of the received products), create a new bill on the supplier and choose the PO under Link to shipment receipts to create a new bill item. The system would calculate the portion that needs to be paid for you. If you need to make an additional installment payment before the product would ship, create a new bill and choose the option Prepayments for Products on P/O to create a new bill item again. The system would follow the installment set up in the payment term to determine the % to apply.
The system tracks the amount of prepayment on a PO vs value already received so if you have already paid for all products being received, there is no need to create a bill to pay for a shipment.