Pre‑payments allow you to request and collect payment before an order is fully confirmed or invoiced. This workflow helps manage risk, improve cash flow, and control order fulfilment.
Pre‑payments are requested and managed on sales orders and are governed by company settings and user privileges.
System Configuration
Before using pre‑payments, the following system settings apply:
Company Settings
A default pre‑payment percentage can be defined at company level.
This percentage is used as the default when a user requests a pre‑payment.
The default value is 100%, but can be adjusted as required.
User Privileges
A privilege controls whether a user is allowed to request a pre‑payment.
Users without this privilege should not be able to request pre‑payments.
Sales Order Flow and Pre‑Payments
Quote Stage
Orders in Quote status do not support pre‑payments.
No pre‑payment options are available at this stage.
Provisional Order Stage
When an order is in Provisional status:
Users with the appropriate privilege can Request payment via Actions
The requested amount defaults to the company pre‑payment percentage
A proforma invoice can be printed, showing:
Requested pre‑payment amount
Relevant order details
If no pre‑payment is requested, the order can be freely converted to a full order
If a pre‑payment is requested:
The order is blocked from being converted to a full order until payment is received
Managing Pre‑Payments Before Order Confirmation
If a pre‑payment exists and the order needs to be cancelled at this stage:
The pre‑payment request must be set to 0
The received payment must be refunded
Only after the refund can the order be cancelled
Converting to a Full Order
Once the pre‑payment has been paid:
The provisional order can be converted to a full sales order
The pre‑payment is recorded against the order
The payment remains as a pre‑payment, awaiting invoicing
Order items are allocated and booked out
If the order needs to be cancelled at this point:
Inventory movements must be reversed
The payment must be refunded
Only then can the order be cancelled
Invoicing and Payment Handling
Draft Invoice
When an invoice is created, the pre‑payment is allocated to the draft invoice
If the invoice value is less than the pre‑payment amount:
The pre‑payment is split
The remaining balance stays against the order
If the draft invoice is deleted:
The pre‑payment is decoupled from the invoice
It becomes available for allocation to the next invoice created
Confirmed Invoice
When the invoice is confirmed:
The pre‑payment transitions into a normal payment
Standard accounting and posting rules apply
Voided Invoice
If a confirmed invoice is voided:
The payment moves back into pre‑payment status
It can be picked up again by a new invoice
Order Cancellation After Invoicing
Once an invoice has been confirmed, the order cannot be cancelled
Any refunds at this stage must be handled through the standard Sales return process