Recording an Advanced Payment from a Customer

How do I record an advance payment from a customer?

How do I record the advance payment, and later on, how do I invoice customer against the payment we already received?

There are times when a customer (debtor) may pay in advance for goods being delivered or services being provided. i.e. you may receive an advance payment before anything is done to earn the payment.

For the purposes of illustration we will use agistment income paid in advance. A customer has paid $3,300 for agistment in advance

To record advanced payment in Cashbook:

• Click on the Debtors toolbar icon.
• Click on the Setup tab.
• Unapplied Payments Account - select and account from the drop-down list. e.g. 001 Agistment Received

Note: Unapplied Payments Account are used as a default account when the system creates a credit note for advance payments, etc. So select an account that is most commonly related to payments in advance.

• Make sure Customer Receipting is set to Optional or Compulsory.
  • If Compulsory is selected, this will be the only available method of recording payments from customers.
  • If Optional is selected, a receipt can be recorded using any of the 3 methods. (Preferred Choice)
• Click on the Close button to exit.

• Still in Debtors.
• Click on the Receipts tab.
• Click on the Add button.
  • Enter receipt information.
  • Tick the Single receipt banked to check box to added transaction to Cashbook.
  • Select a bank account from the drop-down list.
  • Enter Bank Date.
  • Click OK to save.

Note: that if the payment amount exceeds the total of outstanding invoices (e.g. in the case of a deposit paid), the system will prompt to create a credit adjustment note which will show the customers balance as a credit amount. The account allocation (including any GST amount) for the credit note is taken from the default setting for "Unapplied Payments Account" as per the Debtors/Setup tab.

• Click Yes to the following Confirm message:

• Click on the Invoices tab.
• Note: Credit Notes are entered as a negative amount.

To apply invoice to Credit Note:

• Click on Cashbook toolbar icon.
• Click on the Add button.
• Click Yes to Confirm message: 'Do you want to enter transactions for "Working Account", in company file "Company ABC"?'

• Click on the Receipt (deposit) radio dial.
• Enter date of invoice.
• In Received From text box, either type in/select customer name or click on the Invoices button.
• Tick the check boxes in the P column next to the respective credit note and invoice to apply.
• Make sure the Amt Paid amount of the Credit Note is the same amount as the Invoice. (Note: Credit Note amount is negative.)
• Click OK to save.

Cashbook transaction should look like this:

• Click on Debtors toolbar icon.
• Click on the Invoices tab.
• Click on the Unpaid Invoices radio dial.
• The balance of the Credit Note remains as a Credit Note for that customer.

• Click on the Debtors toolbar icon.
• Click on the Reports tab.
• Click on the Statements radio dial.
• Select a date range.  (e.g. 01/07/2017 - 31/08/2017)
• Select Customer/s.
• Tick Include Paid invoices, etc.
• Click on the Print button.

For example: - $3300 + $2156 + $ 2926 = $1782