1. Create Deposit/Pre-payment Item in Item Master

• Go to “Administration”, then select the “Items” submenu, and select “Item Maintenance”. 

2. Replacement Account

• In most cases you will want to set up a replacement account that will allow the item to be ordered on a document. (in V3.1 and higher, masking of the replacement accounts will allow for easier implementation)

3. Add Deposit/Pre-payment to Document

• Add all items for purchase to the document. Then add the deposit/pre-payment item as well as an additional line for the same deposit item with a negative quantity. This keeps the total from being affected.
• Note – regular deposits cannot be charged to an inventory department

4. Payment of Deposit/Pre-payment

• Accounts Payment can now invoice the ‘positive’ deposit/pre-payment from the PO. Accounts Payable does not need a receiver in order to invoice the deposit/pre-payment. The items and negative deposit/pre-payment will be left open on the PO for receiving.

5. Receipt of Items and Payment of Remainder

• Upon delivery the remaining portion of the PO (the lines and negative deposit/pre-payment can now be received and invoiced as normal.

Note - If more information is needed on the functions that relate to deposits & prepayments (creating a new item, replacement accounts, purchase orders, receivers and/or invoices) please see those specific corresponding guides.