Customer makes advanced payment on future purchase

We are in a school setting. Students (customers) have individual accounts and get billed for tuition, textbooks, lodging, etc. Some students make advanced payments on items from our bookstore. These are not Accounts Receivable and should eventually be categorized under Inventory Sales. Do I put the advanced payment in Accounts Receivable, then move it when the items are actually purchased? What is the best procedure? Thank you!

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Create an sales invoice for each student which includes each item a student requires including the inventory items

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Your question has been discussed recently in this topic: Outstanding Balance Feature

It covers most options available in your situation. Read the whole topic thoroughly.

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