If you have received a payment from a customer in advance, even before the invoice is created, you can add it to SlickPie manually. To record this advance payment or prepayment, you have to take the following steps:
Step 1: Create 2 Chart of Accounts, if it's already not there.
- Advance from Customer
- Income
Advance from Customer under Current Liability to record the advance you have received from the customer.
Income as Revenue to record it as the income for your business.
Step 2: Create an inventory item Prepayment.
Please note When creating the inventory, select chart of account, Advance from Customer, as Sales Account.
Step 3: Create an invoice for the customer for the amount you received using the inventory item and chart of account created as mentioned above.
For instance:
Step 4: Record the payment against this invoice.
Step 5: Later once the service is provided, create a Manual Journal. You have to Debit the Advance from Customer and Credit the Income account.
For instance: for the entry, as shown above, we will create Manual Journal the following way.
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