Here are four examples of Payments. Three are temporary prepayments. Select the permanent prepayment.

In Oracle Payables, a permanent prepayment is an advance payment made to a supplier that you do not anticipate applying to future invoices. A classic example provided in official Oracle documentation is a lease deposit where no subsequent invoice is expected to offset the deposit. Conversely, temporary prepayments are designed to be applied against future invoices or expense reports, such as catering deposits or travel advances. Therefore, paying a lease deposit without expecting an invoice perfectly describes a permanent prepayment.

A: Expense reports are standard payables documents or involve temporary advances that are applied to the final report, not permanent prepayments. C: A hotel catering bill where the prepayment is referenced and applied to a final invoice is the exact definition of a temporary prepayment. D: Applying a prepayment to reduce an incoming invoice amount demonstrates the consumption of a temporary prepayment, not a permanent one.

Oracle Corporation. (2010). Oracle Payables User's Guide, Release 12.1 (Part No. E13620-04). Chapter 3: Invoices, Section: Prepayments, Page 3-118. (Explicitly states: "A Permanent prepayment is a prepayment you do not expect to apply to an invoice. For example, a lease deposit.")