Customers – Advanced Payment & Deposits

You can record advanced payments and deposits for customers in the Transactions section of the Customer Profile. Access that by going to Customers > Selecting the Customer > Transactions.

Recording an advanced payment

To record a new advanced payment go to Customers > Selecting the Customer > Transactions > Click the Add under the Advance Payments option.

You’ll then be asked to enter in the details of the transaction;

  • Account – Use the drop down to select the bank account where you deposited the amount that you received
  • Date – Use this to select the date that you deposited the money into your bank account.
  • Comment – This automatically fills with ‘customer overpayment’ but can be changed by clicking in the box and typing in another note.
  • Code – This automatically selects debtors control and should remain debtors control. A debtors control account is where customers payments are recorded against.
  • Advanced Payment from Customer – This automatically fills with the customer that you had previously selected, although can be changed by selecting the customer from the drop down box.
  • In/Out – This will automatically have Money In selected and should remain so as it’s a payment from the customer to you.
  • Amount – This is the amount that the customer has given you and should match exactly what was paid into the box.
  • VAT Rate – Because advanced payments aren’t VATable this should remain as N/A, otherwise it will appear on your VAT return.
  • VAT Amount – This should be 0.00

When you’re finished click the Add Transaction button.

Applying an Advanced Payment

Advanced payment matches or less than outstanding invoice amount

To apply an advanced payment to an account the advanced payment must already be recorded against the customers account.

To apply the payment, go to Invoices > Select the invoice that you would like to apply the advanced payment to. 

  1. Under the payment details section you’ll see the a button labelled Apply Credit and clicking on this will give you a list of available payment credits that can be applied.
  2. Confirm that the payment to be applied by ticking the box next to it then click Apply.
  3. The payment details section will then show a line with details of the payment. The date, amount and comment will match what was originally recorded when inputting the advanced payment in the Transactions page.

Any outstanding amount will show at the top of the invoice and also in the payment details section.

Advanced payment is more than the outstanding amount on the invoice

To apply an advanced payment to an account the advanced payment must already be recorded against the customers account.

To apply the payment, go to  Invoices > Select the invoice that you would like to apply the advanced payment to. 

  1. Under the payment details section you’ll see the a button labelled Apply Credit and clicking on this will give you a list of available payment credits that can be applied.
  2. Confirm that the payment to be applied by ticking the box next to it then click Apply.
  3. Because the advanced payment is more than the outstanding amount you will see that the invoice is marked as overpaid. This means that the customer still has credit with you; the exact amount is the advanced payment amount minus the outstanding amount.

This credit can then be used on future invoices. To apply the remaining credit to another invoice go to Invoices > Select the invoice that you would like to apply the remaining credit to. 

  1. Under the payment details section you’ll see the a button labelled Apply Credit and clicking on this will give you a list of available payment credits that can be applied including the balance from the previous advanced payment that was applied, to apply the remaining credit just tick the box next to it then click Apply. 
  2. If this payment is more than the outstanding amount then the customer will still have credit and you can repeat the process.
  3. The payment details section will then show a line with details of the payment. The date, amount and comment will match what was originally recorded when inputting the advanced payment in the Transactions page.

Any outstanding amount will show at the top of the invoice and also in the payment details section.

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