Advance payment is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery. Advanced payments are recorded as assets on the balance sheet.
- By creating an Advance Invoice
Navigate to the related list of a sales order to create an Advance Invoice.
- Click on Create Invoice
- From the New Invoice Pop up select the Advance record type option and click on Next
- Select the Sales Order Line Items checkbox
- Enter the Total Down payment in percentage (Decimal value eg., 0.5 for 50%)
- Hit Save to create the Advance Invoice
Recording Payment for the Advance Invoice
- Navigate to the Finance Management App > Accounts Receivable
- The customer sub-tab lists all the customers and vendors.
- Select or search for the customer and navigate to the Invoices sub-tab which will list all the Invoices of this customer.
- The Invoices sub-tab lists all the Posted and Unposted invoices. Advance Invoices does not require posting.
- Click the drop-down button on the Invoice row and select Record Payment.
- Page navigates to the Customer Payment screen.
- Enter the Payment Amount first, then the Payment Account (i.e Bank Account) and cheque/transaction number if any.
- Select the line item by checkbox and click on Save or Save and Post.
- A payment created alert will show the Payment Number.
- If the Payment is not Save and Posted then navigate to the Payments sub-tab under Accounts Receivable tab and search with Payment Number.
- From the dropdown button on the payment row Post the Payment.
- An alert gives the payment posted successfully message.