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author's profile photo Former Member
Former Member

Advance to a Customer - peculiar case

Hi Friends,

This is my first question.

I am facing a peculiar problem.

One of the main customers of our client requested to get his roads repaired as it is becoming difficult for transporting purposes with client's money and he promised to repay that when he makes next payment for his purchases with the client. And now, the third party who is doing the work wants advance payment. How to make advance payment to this third party and how to collect this money from the Customer. Simply saying, the advance payment amount what we are paying to the third party (who is repairing the roads) should show against the customer so that we can claim from him. Hope i have explained the situation well. Please ask me for clarifications.

Thanks in advances

Regards

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    author's profile photo Former Member
    Former Member
    Posted on Sep 18, 2007 at 01:28 PM

    If you want simply that check should be printed in the name of third party but debit should go to the customer, then you can mention the thrid party account number in the "alternative payee" field in the customer master. Or else, you can even use the concept "Head office", the field you can find on the customer master itself.

    Pl assign points, if helpful.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2007 at 08:40 AM

    I have done like this ---

    Made advance payment to the vendor who is doing the work.

    When i receive the bill from Vendor, using f-43 I will Debit the customer and credit the vendor to whom i made the advance payment. This increases the debit balance of the customer. So we can claim from the customer later on when we receive the payment from him.

    Suggest me if there is any alternative method.

    Try to answer you will learn more and more.

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 19, 2007 at 08:53 AM

    Hello

    Create a vendor master record.

    Create link between customer and vendor.

    Enter account numbers in both master records.

    Make a down payment using special GL..

    Now when you take a statement of account the advance would be reflected.

    When payment is recieved, the system will ask whether to adjust the advance, say No. Better to clear the advance manually, other wise, there could be uncleared open items in the customer account.

    Reg

    *assign points if useful

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