Advance from customer is a liability account, in which is stored all payments from customers for goods or services that have not yet been delivered. Once the related goods or services have been delivered, the amount in this account is shifted to a revenue account.
How to record Advance from Customers?
There are two types of payment received from customer, namely, Against Invoice and Advance Receipt.
Go to Income > Receipts > Advance Receipts
Option 1: Advance payment received from customers:
Click on New Receipt on the top right side of the screen.
Click on Advance Receipt.
Please fill in all the details to record the advance received:
1) Select Money Received from the drop down.
2) Enter Amount, TDS Amount, Receive Date, Deposit to Account, Select Project, Receipt mode as applicable, Description.
Click on Save and its Done.
Option 2: You can also record payment received against Invoice:
Click on New Receipt on the top right side of the screen.
Click on Against Invoice
Please fill in all the details to record the advance received:
1) Select Money Received from the drop down.
2) Enter Receive Date, Deposit to Account, Select Project, Receipt mode as applicable, Description.
Click on Save and its Done.