What is a Prepayment?
Learn the definition and types of Prepayment in Oracle Fusion Applications
Good day, everyone:) Hope you are all doing well. I am back with a short article for the 3rd day of my #30daychallenge!
If you are working closely with Oracle Fusion Financials then this article is for you.
What is a Prepayment?
A prepayment is a type of invoice you enter to pay an advance payment for a supplier or employee. For example, you may need to pay a deposit on a lease, or you may need to pay an employee an advance for travel expenses. You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.
2 Types of Prepayment: Temporary and Permanent
Temporary prepayments can be applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the amount you pay.
Permanent prepayments cannot be applied to invoices. For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.
The third article has come to an end:) ❤️ Hope to see you on the fourth day of my #30daychallenge.
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I am an Oracle Functional Specialist with more than 6 years of experience. I help clients to understand software capabilities and to analyze business needs. My main goal is to recommend solutions and ultimately guide through all phases of Oracle Cloud Applications. I am also inspired to write about life, improvement, and personal growth.
