How do i manage Customer Advance Payments ?
One of my Customer has given 2450 $ in advance and now we have 3 invoices of $ 1000, $580, $600.
Where do I enter $ 2450?
And how will I deduct $1000, $580 , $600 from $2450.
When customer pays you money in advance, you should categorize received money as Customer advance payments which is liability account.
When you issue invoice(s) and want to apply advance payment, go to Journal entries to create new journal entry and debit Customer advance payment liability account and credit Accounts receivable asset account.
See example:
In future this process will be more streamlined, for now it needs to be recorded like this.
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Thanks.It is working fine as per your approach.But will love to see more streamlined method.
I agree to techenhance.
It is so difficult to divide the payments when we have many invoices.
I have a customer for example
invoice 1 - 750 Eu
invoice 2 - 825 Eu
invoice 3 - 420 Eu
invoice 4 - 400 Eu
invoice 5 - 510 Eu
invoice 6 - 225 Eu
My customer paid all of them. Now how will i do 
It is taking too much of my time. Does all the payments have to be for invoices ?
At the moment it is like that;
Customer Advance Payments > Customer Name > Debits
-----------------------Accounts Receivable> Invoice 1 > Credit
-----------------------Accounts Receivable> Invoice 2 > Credit
-----------------------Accounts Receivable> Invoice 3 > Credit
-----------------------Accounts Receivable> Invoice 4 > Credit
-----------------------Accounts Receivable> Invoice 5 > Credit
-----------------------Accounts Receivable> Invoice 6 > Credit
Taking too much time
But it must be like that
Customer Advance Payments > Customer Name > Debit
---------------------Cash on Hand > Name of Cash on Hand > Credit
And customer accounts has to be changed in customer menu.
When we enter the customer account in customer menu, we are seeing advance payments and unpaid invoices.
But we must see total debit - total credit and balance.
Now you will say ‘’ you can see in customer statement ‘’ but why we prefer the long way.
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@lubos: Any further update on this?
No update yet. It can take up to 3 months from now until more streamlined solution is implemented.
Hi Lubos, has there been any progress on this. Sorry, new to manager and I couldn’t find recent entries regarding advanced payments.
Yes, this has been already implemented.
See: Guides | Manager
Fantastic! That works great.
Unable to get the details of this link. Please advise where I can find the details,
See: Guides | Manager
@ghairaj, you were reading a post from more than a year and a half ago. Many things have been improved since then. See Manager Cloud. If that doesn’t tell you everything you need to know, navigate your way around the Guides.