EXPENSE STATUS CODE

AP Invoice Flow Tables 11i

 ap_invoices_interface
 ap_invoices_all
 ap_invoice_distributions_all a
 ap_invoice_payments_all
 ap_payment_schedules_all
 ap_checks_all
 ap_accounting_events_all
 po_vendors
 po_vendor_sites
 ap_terms
 ap_holds_all
 ap_ae_headers_all
 ap_ae_lines_all
 gl_interface
 gl_je_headers
 gl_je_lines

Prepayment Invoice

There are two types of prepayments:
Temporary and Permanent.

Temporary prepayments can be applied to invoices or expense reports you receive.
For example,you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel's invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.

Permanent prepayments cannot be applied to invoices.
For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.

You can apply the available amount of Item type distributions from a Temporary type prepayment to one or more invoices to offset the amount you pay on the invoice(s). If you entered the prepayment as a Permanent type and want to apply it, you can query the prepayment in the Invoices window and change the Prepayment Type to Temporary.

Prepayment Applications Options
Apply
Prepayment on Invoice

The "Prepayment on Invoice" option is to be used only when the Invoice Amount of the Standard invoice already includes the prepayment application.
If this option is used the negative PREPAY lines and distributions are used along with the other lines and distributions when placing variance holds. When that option is not used PREPAY lines and distributions are excluded when placing variance holds.

Prepayment Applications should typically be made with the "Prepayment on Invoice" unchecked.

Prepayment Applications should not be made with the "Prepayment on Invoice" option checked unless it is certain that the prepayment amount has already been included in the Invoice Amount. 
This would mean that the SUM of the Lines and Distributions for the invoice prior to the prepayment being applied is more than the Invoice Amount.

To correct an existing application done with "Prepayment on Invoice" checked.
unapply the prepayment  application and then reapply it with the Prepayment on Invoice box unchecked.

Prepayment Accounting entries in Accounts Payables

When Prepayment Invoice is created.

Prepaid Expense A/c----------Dr
Liability A/c--------------------Cr

When Prepayment Invoice is paid.

Liability A/c---------------------Dr
Bank/cash A/c-------------------Cr

When Invoice is raised for Expense

Expense Charge A/c--------------Dr
Liability A/c----------------------Cr

When Prepayment is applied to invoice it reverses the original prepaid invoice accounts creates the following accounts

Liability A/c------------------------Dr
Prepaid Expense A/c--------------Cr

Invoices - Account Payables

Regular Invoice

1. Standard invoice.
2. Credit memo.
3. Debit memo.
4. Prepayment.
5. Expense report.
6. QuckMatch.
7. Mixed invoice.
8. PO default.
9.Withholding Tax invoice.

Special Invoice

1. Recurring invoice.
2. Interest invoice.