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FA: SCM: OM: How to Create and Apply a Prepayment Receipt to an Order. (Doc ID 2731904.1)

Last updated on JANUARY 12, 2023

Applies to:

Oracle Fusion Order Management Cloud Service - Version and later
Information in this document applies to any platform.


Can prepayment receipts be captured and applied to Sales Orders ?

Business use case dictates that; order entry should capture the amount paid by customers as advances against the orders as a prepayment receipt. Once the invoice for the order is generated, this prepayment receipt should get automatically applied to and close the invoice. This will avoid a scenario where every time an Order Entry person has to communicate to AR person to capture the advances as stand alone AR receipt in AR. Further the AR person has to manually apply this receipt to Invoice once it is generated. This results in lot of manual stuff and time investment.
Business Requirement :
- recording multiple prepayments against a single sales order
- the ability to generate an invoice in AR for a prepayment with VAT
- credit check should be able to take into account prepayments that have been made
- refunds should be automatically generated if the order is cancelled
- payment terms can be used to determine the default prepayment amounts

Customer needs to prevent processing of an order until upfront payment has been made. Potentially for new customers and customers with a bad credit history the expectation would be that order payment should be taken upfront and that the order will not process until payment has been assured. Once the order has been picked and shipped, the invoicing process will recognize the prepayment and automatically match the new invoice to the receipt created during prepayment.


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