Purchase Order Prepayments

Overview

In Rootstock ERP, Purchase Order Prepayments (POPPY) are advance payments made to a supplier before the actual receipt of goods or services. These prepayments are typically required when vendors request upfront funds to initiate production, secure raw materials, or confirm an order. Within an ERP system, managing PO Prepayments ensures accurate tracking of financial commitments and proper reconciliation against the corresponding Purchase Order. 

With this feature, customers can create, release, and apply prepayments against Purchase Orders or Projects, even before the receipts or invoices exist. This ensures that prepayments are properly tracked, matched, and integrated into both the procurement and financial workflows.

Navigation

Rootstock Site Map > Purchase Orders Prepayments

Application

The POPPY functionality will allow the user to:

• Create a PO Prepayment specifying the Vendor and Amount, and choose how the prepayment can be applied (to any invoice for the Vendor, any invoice for the Vendor and Project, or only invoices for a specific Purchase Order.
  
  
• Once created, the prepayment can be released, which will drive the creation of an Invoice in Accounts Payable, allowing it to be paid like any other payable transaction. 
  
  
• At the time of the PO-AP Match, prepayments can be applied (both automatically and manually) to vendor invoices, resulting in a reduction of the invoice total amount due. 

Fields

Division:  This field displays the Division to which this prepayment belongs.

Prepayment Number:  This field displays the Prepayment Number generated by the system.

Vendor Number:  This field displays the vendor to which this prepayment belongs.

Amount:  This field displays the total amount of this prepayment.

Prepayment Account: This field identifies the sub-ledger account associated with this prepayment. The account is debited when the prepayment is released to an invoice and credited when the prepayment is applied. 

Application Availability:  This field specifies where this prepayment can be used  — whether it can be applied to any invoices for the Vendor or restricted to invoices associated with a specific Project or Purchase Order.

The Picklist values are:

• • • Purchase Order
    • Project 
    • Vendor

Application Method: This field indicates whether the system should automatically apply this prepayment and, if so, determines the method to be used. 

The available methods are:

• • • Maximum Amount:  This method applies the maximum possible amount of the available prepayment to the selected invoice, up to the remaining invoice balance or the remaining prepayment amount — whichever is lower. 
      
      
    • Percentage of Invoice:  This method applies the prepayment based on a defined percentage of the invoice total. 
      
      
    • Percentage of Prepayment:  This method applies a defined percentage of the total prepayment amount to the invoice. 
      
      
    • Manual Application:  This method requires the user to manually specify the amount of prepayment to apply to each invoice. 

  NOTE  The Application Method cannot be changed on completed prepayments.

Purchase Order Number:  This field populates the Purchase Order to which this prepayment can be applied when the application availability is set as the Purchase Order.

Project Number:  This field populates the Project to which this prepayment can be applied when the application availability is set as Project.

Application Percentage:  This field displays the percentage value to be used in automatic applications when the application method is set as Percentage of Invoice or Percentage of Prepayment.

Comments:  This field contains the user-specified comments associated with the prepayment 

Released:  This field indicates that the prepayment has been released, resulting in the creation of a Payable Invoice. Once it is released, the prepayment becomes eligible for application during the PO–AP Match process. 

Release Date:  This field displays the date on which the prepayment was released 

Invoice for Prepayment:  This field represents the invoice generated for the prepayment at the time the prepayment is released. It records the prepayment in Accounts Payable and enables subsequent application to supplier invoices. 

Fully Applied:  This field indicates that the entire prepayment amount has been applied, leaving no remaining balance available for further application. 

Amount Applied:  Displays the total amount of this prepayment that has been applied to invoices through the PO–AP Match or manual application process. 

Amount Remaining to be Applied:  This field shows the remaining balance of the prepayment that can still be applied to upcoming supplier invoices.

Processing

Creating a Purchase Order

• Create a Purchase Order
  
  

  • The Purchase Order and the PO Line are to be created in Approved status.

  • The PO can be submitted to the vendor, but no receipts or invoices are required at this stage.
    
    

• Navigate to Purchase Order Prepayments
  
  

  • Accessible from the Sitemap under Purchase Order Prepayments.

  • Select whether the prepayment is for:

    • A Vendor,

    • A specific Purchase Order, or

    • A Project-level prepayment.
      
      

• Enter Prepayment Details
  
  

  • Specify the Vendor, Purchase Order, and the amount.

  • Save the record.

Releasing a Prepayment

After creation, a prepayment must be released before it can be applied.

• When released, the system automatically generates below records:
  
  

  1. POAP Match Records
     
     

     • POAP Header (POAPHDR) 

     • POAP Match Invoice  (TTAPHDR) 

     • POAP Match Invoice Line (TTAPLINE) 
       
       

  2. Financial Records (if using Rootstock Financials)
     
     

     • Payable Transaction (APINVTXN) 

     • Payable Session (APINVH) 

     • Payables Line  (APINVLINE) 

     • Payables Distributions (APINVDIST) 
       
       

• The prepayment is marked as Released, with a release date recorded.

  NOTE  When a POPPY is recalled, the above records created as part of the release will be deleted as long as the Payable Session/Transaction is not posted.

  NOTE  Deletion of POPPY is not allowed when it has been released and partially or fully applied.

Recall Prepayments

The user can recall the released Prepayment, which will delete all records created during the release.

  NOTE  Recall is only possible if the Payable Transaction has not been posted.

• • If unposted → Recall allowed.

  • If posted → Recall not allowed.
    
    

Once recalled, the prepayment returns to Open status and can be modified, re-released, and re-processed.


Applying Prepayments in POAP Match

When receipts and invoices are recorded against the Purchase Order:

1. Open the POAP Match Workbench.

2. Select the Vendor, Enter the Invoice Information

3. Choose the Receipt(s) that need to be invoiced.

4. Apply Prepayments button: This button searches for available Prepayments and allows users to apply them to the Invoice.

Once the prepayments are applied, the System will update the following records:

• Updates the applied prepayment amount.

• Allow users to submit the POAP Match batch and close it to transfer it to Financials.

• Creates corresponding Payable Transactions where the Prepayment will be applied as a credit to the Invoice.

• • One line for the invoice/receipt.

• • Additional lines for each prepayment applied.
    
      NOTE  Multiple prepayments can be applied to a single invoice. Each prepayment will be listed in both the invoice record and the related payable transaction.

Maintain Dimensions button

When POPPY is not released, the user can maintain the dimensions on the POPPY by clicking on the header button 'Maintain Dimensions', which will open the Dimension maintenance pop-up. Once the POPPY is in released status, the user won't be able to maintain the Dimensions.

  NOTE  Dimensions should be active in the Company Master. 

Manual Adjustment button

It is used to apply a portion of the prepayment to a different GL account. It updates the relevant Manual Adjustment Account while reducing the available prepayment balance. 

Close Out to Vendor Credit button

It is used to transfer the remaining prepayment balance to a Vendor Credit, and is also used when the prepayment is fully or partially unused and the user wants to close it out in Accounts Payable. It creates a Vendor Credit that can be applied to future invoices for the same vendor (Rootstock Financials only).

PO Prepayment Application (POPPYA)

The list of Prepayment applications can be seen at the bottom of the Purchase Order Prepayment page under the PO Prepayment Applications section. To see more details, check the PO Prepayment Application

Generally, PO Prepayment Applications (POPPYA) are created automatically by the system as part of a standard application transaction. However, the system allows users to manually add specific types of applications when needed using the Manual Adjustment and Close Out to Vendor Credit buttons.

SEE ALSO
 

Purchasing Overview
PO-AP Match
PO-AP Match Workbench - Lightning
PO Prepayment Application