A prepayment is payment in advance of the delivery of goods or services. Receivables creates
prepayments as receipts before the related invoices are created.
Receivables integrates with Oracle Payments to process prepayments. Customers can use any
of these payment instruments to make a prepayment:
- Automatic Clearing House (ACH) bank account transfer
- Check (tendered to order taker)
- Credit card/purchase card
- Direct debit
Customers can use more than one payment instrument for a single prepayment. Receivables
creates one prepayment receipt for each payment instrument used.
The creation of prepayment receipts and the subsequent application to matching prepaid
invoices is a process that occurs without user intervention. You cannot manually create
prepayments in Receivables, but you can review prepayment receipt history in Receivables
Prepayment Process Flow
- Record the payment information in your feeder system. The information is passed to Receivables.
- A public API creates a prepayment receipt in Receivables, and processes the receipt using the payment information provided. Receivables applies all prepayment receipts against the Prepayment application type, and records accounting according to the prepayment receivables activity.
- When the order is sent to Receivables for invoicing, AutoInvoice creates an invoice that is marked as prepaid. AutoInvoice initiates a postprocess matching program to identify any open prepaid invoices and search for matching prepayment receipts. When a match is found, the program unapplies the receipt from the Prepayment application type and reapplies the receipt to the corresponding invoice.