Deducting AP Invoice frm deposited Amt with the Vendor.

[Former Member]

Problem we are facing with the customer,

The Situation Is Customer is making advance payment as deposit with His/her Vendor 0f $5000.00, Now on later date he is making purchase of $1000 and he wants the amount to be deducted from the deposited amt. what will be the Process?

Thanks & Regards

Imtiaz M Khan

[Former Member · Accepted solution]

Hi,

You can use outgoing payment with payment on account for the down payment because basically your customer want to put some money as advance payment to vendor without specific transaction explained (it can be item or service).

After the A/P Invoice is created by the vendor, do the reconciliation process based on BP. System automatically display another windows to create balancing journal, where for the first line will put the amount in credit side. They should input the second row, which is should be fill with the same account (in this case vendor code).

Why use reconciliation rather than outgoing payment menu? because you cannot use outgoing payment with negative amount.

That flow is repeat until advance payment is cleared.

Hopefully can help.

Regards

[Former Member]

Make a A/R Downpayment Invoice for 5000. Then make a incoming payment against that DP invoice.

Then make an invoice for 1000. Now reduce the Balance due by calling that A/R DP Invoice. In that manually change the amt to be adjusted.