How to Process Advance Payment (Customer)

Any type of payment that is made ahead of its normal schedule, such as paying for a good or service before you actually receive the good or service. Advance payments are sometimes required by sellers as protection against non-payment.

Go to the Customer Module and Open the Receive Payment

Look for the customer which will have their advance payment.

Select the Deposit to Account (Cash in Bank accounts or Cash Accounts)

Provide a descriptive description of the transaction as well as the Cheque or Reference No.

Once done, input the amount that the customer will pay.

Note: Maintained customer accounts may have outstanding/unpaid transactions yet that will show on the Knock-off tab. Don’t check any invoice(s) in the match column.

You can see that there is already unmatched amount wherein the customer paid even without a provided goods or services document such as invoices/debit note to them.

Now process the standard transaction for sales.

Once the invoice has been issued to customer already, you need to declare that this invoice is already been paid in advance.

Go to the Customer Module then Customer Transaction Knock-Off.

Select the customer in the field.

It will show all the outstanding balances as well as the account credited to the customer such as the Advance Payment.

Select the unmatched amount or the advance payment that to customer gave then matched it to the outstanding invoices on the lower portion of the document.

Once done and saved, this transaction will be removed in the list of the outstanding AR in the customer account.

Hence declared that it has been settled and paid already.

Note: Process can be done as well for Customer Credit Note Transactions