You can record advanced payments and deposits for customers in the Invoices, Stats Etc. section of the Customer Profile.  Access that by going to Customers > Selecting the Customer > Invoice, Stats Etc.

Recording an advanced payment

To record a new advanced payment go to Customers > Selecting the Customer > Invoice, Stats Etc > Click the Add Payment button.  You’ll then be asked to enter in the details of the transaction:

• Account  - Use the drop down to select the bank account where you deposited the amount that you received.
• Date – Use this to select the date that you deposited the money into your bank account.
• Comment – This automatically fills with ‘customer overpayment’ but can be changed by clicking in the box and typing in another note.
• Type – This automatically selects debtors control and should remain debtors control.  A debtors control account is where customers payments are recorded against.
• Advanced Payment from Customer – This automatically fills with the customer that you had previously selected, although can be changed by selecting the customer from the drop down box.
• In/Out – This will automatically have Money In selected and should remain so as it’s a payment from the customer to you.
• Amount – This is the amount that the customer has given you and should match exactly what was paid into the box.
• VAT Rate – Because advanced payments aren’t VATable this should remain as N/A, otherwise it will appear on your VAT return.
• VAT Amount – This should be 0.00.

When you’re finished click the Add Transaction button.

Applying an Advanced Payment

Advanced payment matches or less than outstanding invoice amount

To apply an advanced payment to an account the advanced payment must already be recorded against the customer’s account.  To apply the payment, go to Sales > Select the invoice that you would like to apply the advanced payment to.

1. Under the payment details section you’ll see a button labelled Apply Advanced Payment and a drop down box with details on the payment that clicking that button will apply.
2. Confirm that the payment to be applied is correct the click the Apply Advanced Payment button.
3. The payment details section will then show a line with details of the payment.  The date, amount and comment will match what was originally recorded when inputting the advanced payment in the Invoices, Stats, Etc page.

Any outstanding amount will show at the top of the invoice and also in the payment details section.

Advanced payment is more than the outstanding amount on the invoice

To apply an advanced payment to an account the advanced payment must already be recorded against the customer’s account.  To apply the payment, go to Sales > Select the invoice that you would like to apply the advanced payment to.

1. Under the payment details section you’ll see a button labelled Apply Advanced Payment and a drop down box with details on the payment that clicking that button will apply.
2. Confirm that the payment to be applied is correct the click the Apply Advanced Payment button.
3. Because the advanced payment is more than the outstanding amount you will see that the invoice is marked as overpaid.  This means that the customer still has credit with you; the exact amount is the advanced payment amount minus the outstanding amount.

This credit can then be used on future invoices.  To apply the remaining credit to another invoice go to Sales > Select the invoice that you would like to apply the remaining credit to.

1. You will see the Apply Advanced Payment button again and also see that in the payment drop down details of the previous advanced payment that was applied, to apply the remaining credit just click the Apply Advanced Payment.
2. If this payment is more than the outstanding amount then the customer will still have credit and you can repeat the process.
3. The payment details section will then show a line with details of the payment. The date, amount and comment will match what was originally recorded when inputting the advanced payment in the Invoices, Stats, Etc page.

Any outstanding amount will show at the top of the invoice and also in the payment details section.