Customer Advance Payment

Hi,

One of our customers have paid us upfront for a number of projects.

How would I account for this?

They want an invoice to make the payment. So would I raise a liability N/C and raise the invoice to that N/C instead of sales. And then at the month end, debit out the work completed to date?

Or is there another way to do it?

Thank you.

Sadee-Jo

  • 0

    I would raise the invoice as normal splitting appropriate values between the projects on a line by line item basis. Then once posted you can receive the payment into the bank as a customer receipt against the invoice just raised and the invoiced values (ex VAT) will be reflected against the appropriate projects for that customer. 

    Should keep it all neat and tidy and simple.