Handle Advance Payment for Undelivered Order

1

Hi,

I would like to know how to handle received advance payment from our client (partial/full) towards undelivered order (due to long lead-time). Note that we cannot generate a final Sales Invoice for undelivered order due to tax audit and year-end books closing.

Thanks,

2

Well, it’s not possible to allocate payment against the specific order. Only against the specific customer or invoice. So if there is no invoice, then you can still allocate it to a customer.

When invoice is issued the credit will be automatically applied to invoice.

Does the advance payment need to be specifically allocated to an order? What benefit do you expect to get out of it?

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3

Thanks for the input however, we have found a way to do it without affecting current year books (for the Tax audit purpose).