Good Day! one of my customers pay and advance of say 10,000 dollars for a product to be taken at a later date how would i enter this transaction ? note also the same customer is owing my business say 4,000 dollars before .
in the previous version i used to enter it through customer’s credit which works perfectly but now there is no customers credit how would i go about this. thanks and best regard
See these two Guides:
https://www.manager.io/guides/record-customer-deposits-and-advances/7093
https://www.manager.io/guides/offset-simultaneous-sales-and-purchase-invoices/9655
You have been asking lots of questions already answered by the Guides. Check them out before posting questions–you’ll find answers quicker and in more detail.
Thank you for your assistance, however, what you posted from the guide is not what I’m talking about.
To keep the advance (10,000) separate from the current outstanding (4,000) you would create a BS Liability account called “Prepayments” and deposit the advance to there.
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how would i creat BS liability? i have been using customer’s credit in the previous version to enter payment made by customer for goods to be collected later but now i don’t know how to enter such transaction because customer’s credit under liability is no more. thanks
Go to Settings - Chart of Accounts and under Balance Sheet click “New Account”.
Create a name and under Group select Liabilities.
This account becomes an alternative to the previous Customer Credits.
The technique is described in this Guide, although for another purpose:
http://www.manager.io/guides/avoid-automatic-credit-allocations/10342
Thank you once again, I tried the method above i.e going through the setting to create new account in liabilities but didn’t work. The money deposited in advance could not be linked with the customer. However, I went through the guide and got the problem fixed using account receivable.
My new challenge now is to ask if it is possible to view daily sales I mean sales at any given date which shall include both credit and cash sales. Looking forward to your usual quick response
But by using Accounts Receivable wont the 4000 outstanding against a previous sales invoice now be paid by the 10,000 deposit - which was what you were trying to avoid in your original post.
The liability account could have been made a control account made up of Special Accounts, then you could create customer sub-accounts under Special Accounts to track deposits in advance.
Yes, the 4000 would be paid and since it is the same customer it means he have 6000 as deposit
pls. respond to my question on daily sales