Feature Spotlight: Vendor Prepayments

Cetec ERP prides itself on keeping your company connected. Solid communication is the foundation of speed and efficiency as all departments pull in tandem. One example of how Cetec ERP keeps departments on the same page is our Vendor Prepayments feature. Vendor prepayments and prepaid inventory are a hassle for accounting and AP departments, but we have only seen them increase as a response to long lead times and opportunity for cash flow control. In order to cut down the amount of clicks and amount of data to track, Cetec ERP has developed a Vendor Prepayment feature and object.

The Vendor Prepayment feature is designed to keep your purchasing and accounting department better connected. When inventory is pre-purchased, a buyer on the purchasing team is using a credit card, making this technically prepaid inventory. The buyer can create the prepayment on the PO as they purchase the parts with a credit card payment type. This allows the prepayment to be issued at the PO stage, meaning there are less transactions when the accounting team is closing the record out at the end of the line.

After your GL mappings have been updated to allow you to create prepayments, you’re ready to use the Prepay feature to add a prepayment to a PO. For details on performing Vendor Prepayments in Cetec ERP, check out out our guide.

The Vendor Prepayment feature is a perfect example of how Cetec ERP helps our customers connect their accounting and AP departments to boost efficiency, reduce time spent on tedious tasks, and increase cash flow control. Manufacturers will be able to get ahead of the competition by utilizing this powerful tool.