Prepayments between two parties are very commonly used in the nutrition supply chain. By committing to pay the goods or services before you receive them, you can negotiate better contract conditions with your supplier.

Managing prepaid purchase contracts in the nutrition supply chain can be cumbersome, especially if you deal with soft commodities. Bulk deliveries can leave small open balances on a contract. An ERP system needs to support you instead of burden you with additional time and effort for proper administration and reporting on these prepaid contracts, Adifo has optimized the prepayment flow in MILAS^®, its feed industry-specific ERP software.

The Process

At Adifo we believe that MILAS^® customers benefit from a more efficient and automated prepayment process. The whole prepayment flow has been designed with one goal in mind: flexibility. First of all, our users should be able to process both fully and partially prepaid contracts without effort. The flexibility of moving prepaid balances from one purchase contract to another is essential but the system also needs to be strict enough to guide the user through this process.

Besides being a flexible solution, Adifo’s prepayment process is also highly automated. When marking a purchase contract as ‘prepaid’, the customer can choose whether the prepayment invoice needs to be generated or if a payment journal needs to be created right away. Behind the scenes, MILAS^® then adds links and references between these transactions, resulting in an easy follow-up and reporting process.

Conclusion

By implementing this process, companies using MILAS’^® prepayments will benefit from an ERP supported prepayment management system, resulting in the following benefits:

• Eliminate manual work for administration and follow-up
• Eliminate human mistakes
• Incorporate management of prepayments in the whole company’s cash flow management (which has a huge effect on your financial situation)

More fluent vendor settlements

Supported Dynamics Platforms