New D365 FO functionality: Line-level prepayments, finally practical to use
Starting with D365 FO 10.0.49 (GA September 2026), Microsoft is introducing a small but particularly powerful improvement: line-level prepayments. A game changer for organisations with complex orders, different payment terms or project-based deliveries.
What is changing?
Until now, FO handled prepayments at header level: one percentage, one amount, applied to the entire order. With the new functionality, you can define a specific prepayment percentage and amount for each sales order line.
This means:
- more accurate cash flow planning
- better audit traceability
- correct revenue recognition per line
- fewer manual corrections
How do you activate it?
- Feature management: enable Line level prepayment flow
- AR parameters: Prepayment calculation level = Line
- Configure the Prepayment posting profile
- Configure Sales categories for prepayment accounts
The new line-level columns will then automatically appear in the Prepayment proposal.
Practical example
A customer orders three products with different terms:
| Product | Amount | Prepayment % |
|---|---|---|
| A | €1,000 | 30% |
| B | €500 | 50% |
| C | €2,000 | 10% |
FO now automatically calculates:
- Product A → €300
- Product B → €250
- Product C → €200
Total prepayment: €750, fully posted per line and later also settled per line on the final invoice.
Why is this important?
For manufacturing companies, project-based organisations, international sales structures and high-value orders, this is a functional must-have. It makes prepayments transparent, auditable and compliant.
Would you like to learn more about this new D365 FO functionality and what it could mean for your organisation? Contact our experts.