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57.6 Overpayments |
  
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57.6 Overpayments |
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57.6.1 There are two ways to record advance receipts. Chose the one that best fits your business.
Example. Invoice is $1,000 but client pays $3,000
57.6.2 Option 1
Use a negative invoice to offset the prepayment
Receipt $1,000 to zero out the $1,000 invoice
Record the $2,000 credit/advance amount as a negative invoice (invoice amount = -$2,000)
Every time you open the Business Contacts -> Invoice tab, you will see the negative amount
Use reports 59, 265, 281 and statements to see negative invoice amounts
When you raise the next invoice for the customer apply the value of the prepaid/credit amount and be careful to reduce the negative amount in the negative invoice by the same amount.
When the negative invoice reaches zero, delete it.
57.6.3 Option 2
Split the receipt into two - record a $1,000 receipt against the $1,000 invoice, and then create another receipt for the other $2,000
From the Business Contacts -> select client -> click Invoice tab -> click the receipt field for the invoice -> enter the amount to zero out the invoice -> double click the invoice on the upper right
Click the add new record button (arrow with asterisk at bottom left)
Enter the Receipt amount for the credit amount
Enter Payment method Details
Click the Save and Next button
The credit amount can be seen in reports 59 & 68 (run Financials -> Report 59 or 68). When you want to apply this credit amount to an invoice -> search for the receipt -> edit it -> then apply it to an invoice.