In Microsoft Dynamics 365 Business Central you can require customers to pay before you ship their items. You do this by setting a prepayment percentage.
You can set the prepayment percentage in two ways. Set it on the customer card to apply it to all of that customer’s orders. Set it under Prepayment Percentages to apply it to specific item numbers.
The customer card setting sits on the Payments tab and transfers automatically to every new order you create for that customer.
The item-specific setting lets you define a start date, an end date, and a percentage for each item number, so you can require prepayment only on selected products.
What prepayment percentages do in Business Central
A prepayment percentage tells the system how much of an order the customer has to pay in advance, before you send the items. You use this whenever you want payment up front rather than invoicing after delivery.
You can apply prepayment percentages at two levels: across all of a customer’s orders, or on specific items.
Set a prepayment percentage for all customer orders
To require prepayment on every order from a customer, open the customer and go to the Payments section. In the prepayment percentage field, enter the percentage the customer should pay in advance.
From then on, whenever you create a new order for that customer, the prepayment percentage transfers automatically to the order.
Set a prepayment percentage for specific items
You can also set prepayment percentages on individual items instead of the whole order. Go to Sales and then Prepayment Percentages.
Here you set up a line for each item number. For each one you can enter a starting date, an end date, and the prepayment percentage.
As an example, you can set a prepayment percentage of 100 on item 1050. When the customer buys that item, the order requires full prepayment for that specific product.
Q&A
What is a prepayment percentage in Business Central?
It is the share of an order a customer must pay before you ship the items. You use it when you want the customer to pay in advance of delivery.
How do I require prepayment on all of a customer’s orders?
Open the customer, go to the Payments section, and enter the percentage in the prepayment percentage field. The value transfers automatically to every new order you create for that customer.
How do I set prepayment for specific items only?
Go to Sales and then Prepayment Percentages. Add a line per item number with a starting date, an end date, and the prepayment percentage.
Can I require full prepayment on a single product?
Yes. Set the prepayment percentage to 100 on the relevant item number. For example, setting item 1050 to 100 means the customer pays the full amount in advance for that product.