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

Setup and Prerequisites

• Permission Sets: Access is granted through the Rootstock ERP permission sets. Along with the user profile, the following permission sets are required:
1. RS - PO Entry and Processing: create, edit, release and recall prepayments.
2. RS - PO-AP Match: apply prepayments in the workbench and create the PO-AP Match records upon release.
3. RS - Purchasing Setup Data Manager
4. RSF - Accounts Payable

  NOTE. RS - Standard Platform User already includes all of this.

• PO Control Configuration: for Prepayment Account, Prepayment Prefix, and Prepayment Exchange Rate Variance Acct.
• System Defaults Configuration: When the field "Use the Lightning POAP Headers Workbench" is checked, releasing a prepayment closes the invoice and automatically transfers the batch to AP. This only applies when the financial system is Rootstock Financials.

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 generate 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, reducing the total amount due on the invoice. 

Fields

Processing

Create a Purchase Order

• The Purchase Order and the PO Line are to be created in Approved status.
• 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: Vendor, specific Purchase Order, or Project-level prepayment.
  

Enter Prepayment Details

• Specify the Vendor, Purchase Order, and the amount.
• In the Prepayment Date field, enter the prepayment transaction date. When left blank, the current date is used.
• Save the record.
  
  

Releasing a Prepayment

After creation, a prepayment must be released before it can be applied. When released, the system automatically generates the following records:

POAP Match Records

• • POAP Header (POAPHDR)
  • POAP Match Invoice  (TTAPHDR)
    
  • POAP Match Invoice Line (TTAPLINE)
    

           Financial Records (if using Rootstock Financials)

• • Payable Session (APINVH) 
  • Payable Transaction (APINVTXN)
  • Payables Line  (APINVLINE)
  • Payables Distributions (APINVDIST) 
    

  IMPORTANT  When a PO Prepayment is released, and a prepayment date is specified by the user, the related date fields on the downstream records are captured as follows:

• If the Prepayment Date is filled in, it becomes the Document Date on the Payable Transaction.
  
  
• If the Prepayment Date is blank, the current date is used as the Document Date.

  NOTE  In case the Override Due Date is filled in by the user, it is used as the Due Date on the Payable Transaction. Otherwise, the Due Date is calculated from the Prepayment Date (or the current date) using the vendor's payment terms. The Vendor Invoice Number on the prepayment is copied as the Document Number in the Payable Transaction. If left unchanged, it is the same as the prepayment Name.

  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. 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 in which the Prepayment is 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 POPPY by clicking the 'Maintain Dimensions' header button, which opens 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 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 is located 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