Deposits and Advanced Payments

You may often encounter moments where a Customer has paid a deposit or supplied money before an Invoice is issued. Kashflow handles this as an Advanced Payment.

Recording an Advanced Payment

You can navigate to the Advanced Payment creation for a Customer by two means:

Customers > Select the appropriate Customer > Invoice, Stats, etc > Under “Advance Payments” from the “Add Payment” drop-down list choose the Bank Account you wish to create the Advanced Payment/ deposit
or:
Bank > “View/ Add” of appropriate Bank Account > Adjust Bank Code to “Debtors Control Account” and the sub-code to the Customer’s name

• Date – Use this to select the Date that you deposited the Advanced Payment into your Bank Account
• Comment – If automatically fills with ‘Customer overpayment’ but can be changed by clicking in the field and typing
• Code – This automatically selects Debtors Control Account and should remain Debtors Control Account
• Sub-code – This automatically fills with the Customer that you had previously selected, although can be changed by selecting another Customer from the drop-down list
• In/Out – You should select to have an amount under “In” as this is an advanced payment
• VAT Rate – Because advanced payments are not VATable this should remain as N/A, otherwise it will appear on your VAT Return and other reports that handle VAT.
• VAT Amount – As a consequence of the VAT Rate, this should remain 0.00

When you’re finished, click “+” to add the Transaction to your Bank Account

Applying an Advanced Payment to an Invoice of Equal or Greater Value

When you have raised an Invoice of equal or less value to the Advanced Payment made for the Customer, you can apply the Advanced Payment by:

Invoices > Select the Invoice that you would like to Apply the Advanced Payment to > 

1. When under the “Payments” tab you will be presented with “Apply Credit” to the right, and clicking on this will give you a list of available Advanced Payment and Credit Notes that can be applied
2. Confirm the payment to be applied by selecting the appropriate box, then click “Apply”.
3. The Payment tab will now show a line with the details of the Payment/ Credit you had chosen to Apply.

If the Invoice has an amount still due after applying payment it will show beneath the Invoice details.

Applying an Advanced Payment to an Invoice of a Lesser Value

When you have raised an Invoice of equal or less value to the Advanced Payment made for the Customer, you can apply the Advanced Payment by:

Invoices > Select the Invoice that you would like to Apply the Advanced Payment to > 

1. When under the “Payments” tab you will be presented with “Apply Credit” to the right, and clicking on this will give you a list of available Advanced Payment and Credit Notes that can be applied
2. Confirm the payment to be applied by selecting the appropriate box, then click “Apply”
3. Th Invoice will now be marked as overpaid. This will create credit for the Customer to the exact amount of the Advanced Payment less the Invoice value.

Like the Advanced Payment, this credit can then be used on future Invoices for that Customer. To apply this Credit:

Invoices > Select the Invoice that you would like to Apply the Advanced Payment to > 

1. When under the “Payments” tab you will be presented with “Apply Credit” to the right, and clicking on this will give you a list of available Advanced Payment and Credit Notes that can be applied
2. Confirm the payment to be applied by selecting the appropriate box, then click “Apply”.
3. The Payment tab will now show a line with the details of the Payment/ Credit you had chosen to Apply.