1. Pre-Payment Setup

The pre-payment functionality requires initial configuration before it can be used. The steps below outline the required setup:

Enable the Pre-Payment Major Function Flag

Navigate to:

PSA Air – Automated AP → PSA Air – Setup → PSA Air – Major Function Flags

• Locate the Pre-Payments major function flag.
• To enable pre-payments, enter Y in the Description field.
• To disable pre-payments, enter N in the Description field

Once enabled, this unlocks access to related pre-payment features.

From the Major Function Flags screen:

• Use the "Pre-Payment Maint" mode at the top of the screen to access Pre-Payment Type Maintenance.
• Users must have access to ZRAP S007 – RAPS Pre-Payment to maintain this table and to use Pre-Payment Mode within Maintain Purchase Orders (PO M006).

Configuring Pre-Payment Types

Pre-Payment Types allow organizations to define various categories of pre-payments; each associated with a specific General Ledger (GL) account. This is useful when different types of pre-payments need to be accounted for separately.

Maintain Pre-Payment Types (ZUIT M002)

• Here, users can define and manage different pre-payment types.
• When assigning a PO for pre-payment, the user will be required to select a pre-payment type. This ensures the correct GL account is used for posting.

After the following steps are completed:

• The Pre-Payments Major Function Flag is enabled
• Pre-Payment Types are created
• Users are granted appropriate access,

the client can begin utilizing the pre-payment customization in PSA Air – Automated AP for efficient tracking and processing of vendor pre-payments.

Pre-Payment Customization Step by Step

The step-by-step instructions below will walk a user through a simple example of pre-payment customization. This example will be not deal with any partial receipts or partial pre-payments. Partial Pre-Payments will be shown in the following instructions. 

Classifying Purchase Order as Pre-Payment

The first step will be to find an order that is in status 40 (On Order) or 11 (Backorder) to begin the pre-payment process. The user will find the record and then use the pre-payment mode at the top of Maintain Purchase Orders (PO M006). Note: Users will need ZRAP S006 – RAPS Pre-Payment to access this function. If the user does not have access, a system message will appear and prevent further action.

Clicking on 'Pre-Payment' will open a custom screen. This screen will show order total, pre-payment total, and the line detail of the PO.

There are two required steps in this screen: to determine how much the pre-payment is and which pre-payment type is going to be selected

Pre-Payment value can be determined by a specific amount or percentage. The user will click amount or percentage at the top of the screen. 

If amount is chosen it will ask the user to type in the amount of the pre-payment

If percentage is chosen it will ask the user to type in the percentage of the pre-payment and it will automatically calculate the pre-payment amount.

Next, the user must select the type of Pre-Payment. The user will click the type mode at the top and it will bring up with the different types of pre-payments that were set up during the Pre-Payment Set Up section

Once the value and type of the pre-payment have been selected the final step is for the user to use submit and quit. If the value or type has not been selected the user will get a message stopping progress

Once the user clicks on submit and quit a message will populate asking the user if they are sure they want to do a pre-payment on PO#

Once the user clicks on yes two lines will be automatically generated. 

Line 9998 is the pre-payment with a positive value that was submitted by the user

Line 9999 is the pre-payment offset with a negative value that was submitted by the user

If the user drills down into the lines both lines 9998 and 9999 are coded to the GL account associated with the Pre-Payment Type

Once the user has classified the purchase order as pre-payment it will store that information in z-air-pre-payment-details so that it can be tracked properly through the system.

Fully Receiving and Paying Pre-Payment

Now that the purchase order is set up as pre-payment the user will then need to go and receive and pay the pre-payment. In this example since there are no partials the user will go in and do a goods receipt on the pre-payment line for the amount of the pre-payment invoice.

The user can put in Pre-Payment or the Delivery Docket of the Pre-Paid

Finally, the user must update the goods receipt. Upon update the system will create two more purchase orders (Status 11 Backordered and Status 55 Ready to Return)

PO 16166 AA (Backorder) will have the materials/services that were ordered

PO 16166 AB (Goods Return) will have the Pre-Payment Offset in it. This will be used later when the client gets the invoice for the materials/services

Once the pre-payment line has been received it creates a purchase order in status 70 (Goods Updated) that is ready to be paid. The client will get an invoice for the pre-payment and they will send it through PSA Air – Automated AP. Once the invoice hits the PSA Air – Validate screen the user will tie that Goods Updated (Pre-Payment) purchase order to the Invoice

The client will process this invoice just like normal following all the steps and approvals through PSA Air – Automated AP

Once the pre-payment is processed it will hit the Supplier Account

The Goods Receipt Batch Enquiry will show that the pre-payment line hits the Prepaid Account that was selected with the Pre-Payment Type

This will be cleared out when the Pre-Payment Offset line is received.

The Pre-Payment will now be available to be paid. The user can go in and issue a payment for the pre-payment receipt

If the user goes back and looks at the purchase orders, they can see that they have one purchase order that has been completed (Status 90). That is the pre-payment. Then they will see that there is Status 11 Backorder, Materials or Services Ordered, and Status 55 Ready to Return, Pre-Payment Offset.

Fully Receiving and Paying Materials/Services and Pre-Payment Offset

It is now time to pay for the materials that have arrived or services that have been completed. The first step would be to receive the backordered PO. This will follow the same goods receipt process that happens with normal POs in the system. This can be done on Maintain Purchase Order Screen (PO M006) or in PSA Air – Automated AP

Once the materials/services have been received then the Pre-Payment Offset needs to be received. This process will be the same as receiving a purchase order. The user will click on Goods Receipt and Receive the amount that is going to be offset. Then the user will click submit and quit. make sure the value you are receiving is negative

Lastly, the user will update the ready to return PO. This will move it to Status 75 Goods Returned. Now the user has a PO in Status 70 Goods Updated and Status 75 Goods Returned

The total balance between 16166AA and 16166AB is $36,000 which should match the invoice that comes in for the materials/services

Now that the user has both POs in an updated status these purchase orders can be tied to an invoice

Invoice comes in and the use can add both purchase orders to the invoice. It will take the $40,000 Receipted PO and offset it by the $4,000 Pre Payment-Offset PO to equal the amount of the invoice. 

Once both POs are attached the user can process the invoice like normal. They will get the Invoice Variance Screen. The user will select M for multiple

Verify everything looks correct and there is no variance

Once posted it will be available to be paid in Selective Invoice Payment. If the user looks back at the Pre-Payment Offset receipt they will notice that the Prepaid account will have a credit towards it clearing it out from the receipt of the original Pre-Payment

Once posted it will be available to be paid in Selective Invoice Payment.

Once payment is processed all PO will now be in a completed process and the pre-payment process is completed.

Partial Pre-Payment Process

The set up and classifying the purchase order as a pre-payment is all the same when it comes to partial pre-payments. The user would go in a click on pre-payment and give it a value and type and hit submit and quick. 

Once the user has the order with the pre-payment lines on it then they can partially receive based on what is required as pre-payment. In the example the site is getting a partial shipment of the parts ordered and the pre-payment is going to be 10% of what is shipped. The site will get the invoice for the pre-payment amount of $1,800 for a partial shipment.

The user will go into the purchase order and go and receive $1800 of the Pre-Payment Line

This will create a PO 16168 in status 70 for the pre-payment invoice

It will create a PO 16168AA in status 11 that will have the materials/service and the remaining pre-payment information

It will create a PO 16168AB in status 55 Ready to Return with the Pre-Payment Offset Line

The user can then go and pay the pre-payment invoice by using the status 70 PO 16168. When that PO was received it hits the pre-paid account for $1800

The user can go and process the invoice and process the payment for the Pre-Payment

Once the pre-payment is handled and the materials/services are received the user will now go in and receive the goods/services and receive the pre-payment offset. The user will get an invoice for the materials

The user will do a good receipt on 16168 AA like normal. The user will leave the Pre-Payment Line alone during this time. The pre-payment for this partial receipt has already been handled in the steps above.

When the user submits and quits and then updates it will create an additional back order PO 16168 AC. This backorder will have the rest of the Pre-Payment Line and materials/services on it

Next the user will need to partially receive the Return PO 16168 AB. To do this the user will click on Goods Receipt and receive the offset line partially to offset the original Pre-Payment amount. Note when doing receipt on Goods Return, make sure the value you are receiving is negative

Upon Submit and Quit and update this will generate an additional Return PO 16168 AD. This will hold the remaining Pre-Payment Offset Value

Now the user will have 5 POs associated with this order

16168 – Completed (Partial Pre-Payment)

16168AA – Goods Updated (Partial Receipt of Materials/Services)

16168AB – Goods Returned (Partial Receipt of Pre-Payment Offset)

16168AC – Backordered (Remaining Pre-Payment Value and Materials/Services)

16168AD – Ready to Return (Remaining Pre-Payment Offset Value)

The user now can go add the two received POs (16168AA & 16168AB) to the invoice and process the payment like normal.

Once invoice is paid both 16168AA and AB will be in completed status and the user will be able to see the transaction on the supplier enquiry

Now if the user goes to review the PO they will have three POs in status 90 Completed and one PO in Back Order and one in Ready to Return. 

When the second pre-payment invoice arrives, the user should access the backordered PO and receive the remaining or partial of the pre-payment line to pay the pre-payment invoice

Upon receiving the last bit of the pre-payment line the system will generate another back order PO 16168AE with the remaining materials/services of the PO

The user then follows same steps as before and goes into PSA Air and ties PO 16168AC (Pre-Payment #2) to the invoice and pays the invoice

Once paid it will turn into Status 90 Completed leaving the user with two open POs. PO 16168 AD (Pre-Payment Offset) and 16168AE (Remaining Materials/Services)

The final materials/services arrive and the invoice comes in. The user will then do a goods receipt on both POs and attach to the invoice to make the final payment.

After the final invoice has been paid the user can take one final look at the Purchase Orders and transactions on the supplier.