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How do I take an advance from a customer and use it later?

Record the money on a Collection with an advance journal (or a prepayment journal to tie it to a sales order). It sits on the customer as an open credit. When the invoice is posted, use the advance on a Customer Settlement, or select it with the invoice on the next Collection.

Screen
Accounts Receivable › Collection › Collection, Customer Settlement
Who
Cashier, accountant
Takes effect
On save
Needs first
An advance or prepayment collection journal

Steps​

  1. Open Collection, New, pick the advance (or prepayment) journal, the Posting Date and the Payer. Create.
  2. Clearings: for an advance, one line with the amount; for a prepayment, tick the sales order and type the amount.
  3. Collection Through: the payment method and amount. Save.
  4. Later, when the invoice is posted: open Customer Settlement for the customer, press Create, press auto-settle (or type the amounts: positive on the invoice, negative on the advance), and save.

Check it worked​

  • The Customer Aging shows the advance as a negative amount until it is settled, and the invoice as cleared after.