# Advance amount from customer **URL:** \ **Category:** Uncategorized\ **Created:** [February 1, 2016, 8:08am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688 "2016-02-01T08:08:55Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![adeelsheikh1](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/adeelsheikh1/32/22585_2.png) [@adeelsheikh1](https://forum.manager.io/u/adeelsheikh1)\ **Post date:** [February 1, 2016, 8:08am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/1 "2016-02-01T08:08:55Z")
How to receive Advance amount from customer in bank or cash in hand ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [February 1, 2016, 1:28pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/2 "2016-02-01T13:28:25Z")
Is this advance against a sales invoice, then receive it like any other customer payment If its not against a sales invoice, then perhaps a sales invoice should be created ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [February 1, 2016, 2:48pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/3 "2016-02-01T14:48:29Z")
The ideal approach would be to allocate the receipt to `Customer credits` account for the specific customer. ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [February 1, 2016, 3:22pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/4 "2016-02-01T15:22:14Z")
> [@Tut](#): > > So you must create a new liability account named something like Prepaid deposits and income. Allocate the receipt there, then transfer to Customer credits via a journal entry, debiting Prepaid deposits and income and crediting Customer credits for that customer. When you are finished, Prepaid deposits and income will be empty. When you create the sales invoice for the work, Manager will automatically apply and show the credit and balance due How to confuse an Irishman, no offence to the Irish, it just an adage that’s used . Sometimes @Tut, being technically correct is one thing but making bookkeeping that boring and complicated is another. Increasingly, people using accounting packages are self employed or not operating traditional administration therefore us “professionals” need to communicate as educators rather then purists. If that means the user get the right result without being technically correct - there has been a win. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [February 1, 2016, 4:25pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/5 "2016-02-01T16:25:40Z")
Once again, @Brucanna, I agree with you. I am all for getting things done in the easiest way possible without creating problems by violating fundamental accounting principles. In my original reply on this topic, I confused a limitation on sales invoice allocation with receiving of money. So I’ve edited my comments. So…@adeelsheikh1, the answer to your original question is now simpler. First, be sure you have created the customer. Then, in either the Bank Accounts or Cash Accounts tab, Receive Money and allocate the receipt to Customer credits and your customer. Manager will automatically apply the credit when you create a sales invoice. By the way, I’m not an accounting professional, just a small-time business owner who taught himself double-entry accounting in the old days of paper journals and ledgers (on that lovely green paper). I suppose enough time has passed to admit that I originally got it all wrong, completely reversing debits and credits. Of course, since I was totally consistent in my error, everything worked out. That is probably the best example you could ask for of getting the right result without being technically correct. 😉 To this day, I actually think that was an advantage, because I still must stop and think carefully about the accounting equation whenever I do anything. ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [February 1, 2016, 10:23pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/6 "2016-02-01T22:23:26Z")
Off topic but, I used professionals in quotes not in relation to accounting qualifications but in reference to those who have extensive learnt knowledge of accounting and/or Manager and who are so willing to share and guide others - there is plenty of evidence within this forum to illustrate that that hat suit you. ---
**Author:** ![andreag](https://avatars.discourse-cdn.com/v4/letter/a/7bcc69/32.png) [@andreag](https://forum.manager.io/u/andreag)\ **Post date:** [April 4, 2016, 3:11am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/7 "2016-04-04T03:11:12Z")
In my opinion this transaction should be: D: Bank (money in bank account) D: Bank charges (cost) C: Customer advance (or some other liability account) the invoice is issued: D: Customer credit C: Sales than D: Customer advance C: Customer credit How to do this in Manager? many thanks Andrea ---
**Author:** ![rully\_p](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/rully_p/32/2503_2.png) [@rully\_p](https://forum.manager.io/u/rully_p)\ **Post date:** [April 4, 2016, 4:04am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/8 "2016-04-04T04:04:58Z")
Hi Andrea, I think you just in the Bank Account Receive Money against the Customer Credit and Select your customer name. ---
**Author:** ![andreag](https://avatars.discourse-cdn.com/v4/letter/a/7bcc69/32.png) [@andreag](https://forum.manager.io/u/andreag)\ **Post date:** [April 4, 2016, 4:16am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/9 "2016-04-04T04:16:24Z")
Hi rully\_p, how do you record bank charges? I had to record a payment in bank account in order to balance (D: bank charges, C: bank account) i.e. D: bank account 110 (money in 100 + 10 bank charges) C: customer credit 110 then (as “spend money”) D: bank charges 10 C: bank account 10 at the end everything balance, but in my opinion is quite intricate… BR Andrea ---
**Author:** ![rully\_p](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/rully_p/32/2503_2.png) [@rully\_p](https://forum.manager.io/u/rully_p)\ **Post date:** [April 4, 2016, 4:59am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/10 "2016-04-04T04:59:43Z")
Hi Andrea, When you receive Money, you can add line below the customer credit. Lets Say the first line customer credit for 110 you add line and put it bank charges -10 so in the end the total money that you receive will be 100. BR Rully ---
**Author:** ![andreag](https://avatars.discourse-cdn.com/v4/letter/a/7bcc69/32.png) [@andreag](https://forum.manager.io/u/andreag)\ **Post date:** [April 4, 2016, 6:55am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/11 "2016-04-04T06:55:47Z")
Hi Rully, the transaction will be recorded as D: -10 (egual to C: 10) in bank charges account? thanks Andrea ---
**Author:** ![rully\_p](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/rully_p/32/2503_2.png) [@rully\_p](https://forum.manager.io/u/rully_p)\ **Post date:** [April 4, 2016, 10:25am UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/12 "2016-04-04T10:25:01Z")
No, because this transaction will be like D Cast At Bank 100 D Bank Fee 10 C Customer Credit 110 ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [September 18, 2016, 6:56pm UTC](https://forum.manager.io/t/advance-amount-from-customer/4688/13 "2016-09-18T18:56:32Z")
Closed on September 18, 2016, 6:56pm UTC