Suppliers – Advanced Payment & Paying Deposits

You can record advanced payments and deposits for Suppliers in the Purchases and Stats section of the Supplier Profile. Access that by going to Suppliers> Select the Supplier> Transactions.

Recording an advanced payment

To record a new advanced payment go to Suppliers> Select the Supplier> Transactions > Under Advanced Payments> 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 ‘supplier overpayment’ but can be changed by clicking in the box and typing in another note.
• Code – This automatically selects creditors control and should remain creditors control. A creditors control account is where Suppliers payments are recorded against.
• Advanced Payment from Supplier – This automatically fills with the Supplier that you had previously selected, although can be changed by selecting the Supplier from the drop down box.
• In/Out – Please enter the value in the ‘Out’ box.
• Amount – This is the amount that you have paid to the Supplier 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 receipt amount

To apply an advanced payment to an account the advanced payment must already be recorded against the Suppliers account.

To apply the payment, go to Purchases> Select the Purchase> Scroll down to Payments.

1. Here you’ll see the a button labelled Apply Credit and clicking on it will give you a list of available credits with details on the payment that clicking that button will apply.
2. Confirm the payment to be applied by ticking the box then click the Apply 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 Transactions page.

Any outstanding amount will show at the top of the receipt and also when you click Add Payment.

Advanced payment is more than the outstanding amount on the receipt

To apply an advanced payment to an account the advanced payment must already be recorded against the customers account.

To apply the payment, go to Purchases> Select the Purchase you wish to Apply the Advanced Payment to.

1. Under the payment details section you’ll see the a button labelled Apply Credit and clicking on it will give you a list of available credits 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 button.
3. Because the advanced payment is more than the outstanding amount you will see that the receipt is marked as overpaid. This means that the supplier 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 receipts. To apply the remaining credit to another receipt go to Purchases > Select the receipt that you would like to apply the remaining credit to. 

1. You will see the Apply Credit button again, to apply the remaining credit just confirm the payment and then click Apply. 
2. If this payment is more than the outstanding amount then the supplier 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 Transactions.

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