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Prepayments

Overview

Proforma Purchase Invoices are a type of document used to record anticipated purchase costs before the actual invoice is received from the vendor. They serve as temporary placeholders for tracking expected expenses and can be useful for budgeting and financial planning purposes. Here’s an overview of Proforma Purchase Invoices in Dynamics 365 Finance and Operations:

  1. Creating Proforma Purchase Invoices: Users with appropriate permissions can create Proforma Purchase Invoices manually in the system. These invoices contain information such as vendor details, expected purchase costs, quantities, and other relevant information.
  2. Tracking Expected Costs: Proforma Purchase Invoices allow you to track expected costs and monitor anticipated expenses. They provide visibility into future financial obligations and help in budgeting and forecasting activities.
  3. Integration with Procurement Processes: Proforma Purchase Invoices can be integrated with procurement processes in Dynamics 365 Finance and Supply Chain Management. For example, you can create a Proforma Purchase Invoice when raising a purchase requisition or during the purchase order creation process.
  4. Linking to Actual Purchase Invoices: Once the actual invoice is received from the vendor, you can link it to the corresponding Proforma Purchase Invoice in Dynamics 365 Finance and Supply Chain Management. This helps in reconciling the anticipated costs with the actual costs incurred.
  5. Approval and Workflow: Proforma Purchase Invoices can be subjected to approval workflows to ensure proper authorisation before they are used for financial planning and reporting purposes.
  6. Reporting and Analysis: Proforma Purchase Invoices provide valuable data for reporting and analysis. You can generate reports to compare expected costs with actual costs, identify variances, and analyse budget performance.
  7. Integration with General Ledger: Proforma Purchase Invoices are integrated with the general ledger in Dynamics 365 Finance and Supply Chain Management. Once an actual invoice is linked to a Proforma Purchase Invoice, the system updates the financial records and accounts for the actual expense incurred.

Proforma Purchase Invoices in Dynamics 365 Finance and Supply Chain Management help organisations manage and forecast their expenses effectively. They provide a mechanism to record anticipated costs and align budgeting activities with procurement processes, enhancing financial visibility and control.