Recording an Advanced Payment from a Customer
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 an advanced payment in Cashbook:
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.
Note: 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 customer's 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 on the Invoices tab
Note: Credit Notes are entered as a negative amount
To apply invoice to Credit Note:
Click on the 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 the Received From text box, either type in / select customer name or click on the Invoices button
Tick the checkboxes 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 the Debtors toolbar icon
Click on the Invoices tab
Click on the Unpaid Invoices radial 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 radial 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
Article ID 1992