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Functions:
Customers
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| To do these business operations... | Use these functions |
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You record an advance payment received from a customer
and then enter the invoice when the job or delivery is complete.
First, set up an advance payments liability account. The account can reflect deposits, downpayments, and any other payment customers make before receiving goods or services. |
General Ledger
Configure Chart of Accounts |
| Set up a Cash Receipts Journal to enter advance payments received. In the "Columns allowed" field select Credit only. In the "Account" field, select the Advance Payments account you set up in the COA. |
Bank Accounts
Configure Cash Receipts Journal |
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Enter a deposit to record the Advance Payment received from the customer.
In the Deposits window, at Receipt type, select the Cash Receipts Journal
you created for this purpose.
In the credit column of the CRJ, enter the amount of the advance payment.
For the Description, you can enter the customer's name or any information you wish to identify the advance payment. |
Bank Accounts
Deposits |
| Verify your deposit. Select the journal (for example, "Advance Payments") to preview or print the journal. |
Bank Accounts
Cash Receipts Journal |
| Create a Product List Item for advance payments received. For the GL account to which transactions for this item will be automatically posted, select the advance payments liability account you set up. |
Sales
Product List |
| Process the Sales Invoice when the job is complete. Complete the top portion of the Sales Invoice as you normally would. On the first line in the Invoice details table, enter the product or service for which the advance payment was made. On the second line, select the Product List item you set up in the Product List for advance payments received. On the second line, in the Amount field, as a negative amount, enter the amount of advance payment (which you have already recorded as a deposit) to apply to this invoice. |
Sales
Invoices |