Types of Prepayments - Oracle EBS R12

https://aporaclepayables.blogspot.com/2019/07/types-of-prepayments-oracle-ebs-r12.html

There are two types of prepayments: Temporary and Permanent.

Temporary Prepayments

Temporary prepayments can be applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.

Or;

It’s a Deposit with the supplier, But it will be adjusted against future Invoices.

Permanent Prepayments

Permanent prepayments cannot be applied to invoices. For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.

Or;

It’s a deposit with the supplier, But it will not be adjusted against future Invoices. It’s nothing but a security deposit.