Advances Validation in Payables

Question

Hi There
We are implementing Oracle R12 and have been informed by our solution implementer that there is no validation between the advance entered on the invoice and the advance amount on the associated purchase order. Hence we could pay more than the advance documented on the purchase order unless it is checked manually.
Can someone confirm if this is true i.e. that there is no standard functionality to validate the advance between the invoice and purchase order. If not do you know the logic behind this?
Thanks
Philip

Answer 1

Prepayments (Advances) are created in Payables only when there is no Invoice data or Purchase order data available to create in Invoice. Once the Invoice is created (may be from a PO) later on, the prepayments would be applied to the Invoice.
So while creating a Prepayment, you'll not have a PO at that point. And if you have a PO at that point, you create in Invoice and not a Prepayment.
Also, a Prepayment can be applied to multiple Invoices. The prepayment is open an available until all of the amount is applied to one or more invoices.