After clicking Prepayment, a window will pop up, asking for you to enter details regarding the prepayment (see Figure 3). In the Description field, enter the description of the prepayment that you’re creating, and then click the prepayment basis that you wish to apply.
With the prepayment basis, you have two options: Fixed or Percent. With the fixed option, you can apply a fixed dollar amount that you wish to apply to the purchase order amount. In Figure 3, we have entered a fixed amount with the value of $100,000 – so if we choose this prepayment option, $100,000 will be applied to the purchase amount.
With the percent option, you can choose to apply a certain percentage of the purchase order amount (see Figure 4). In Figure 4, we have entered 10% as the percent value, so 10% of the purchase order will be applied as prepayment. As you can see, the system calculates the 10%, showing the prepayment as $14,620, which is of course 10% of the total $146,200 purchase order amount.