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Former Member

AR down payment invoice and AR invoice

Once I use 2 or 3 AR down payment invoices for different due date, do I need to create AR invoice again?

If yes, what are the JE transaction detail in AR down payment invoice (Dr. AR Cr. Customer Deposit) and AR Invoice (Dr. AR Cr. Sales). Since AR down payment posted to Customer account and showed in aging.

If not, then where is the Sale JE? All "Drop Ship" SO to Invoice.

The benefit for AR down payment that will remind you how much to collect without affecting Cost or Inventory, but the JE confused me now. If AR down payment equals Invoice then when we generate the SALES transaction?

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1 Answer

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    Former Member
    Jan 14, 2009 at 03:34 AM

    Hi Lily,

    Yes, you need to create AR Invoice.

    For example, I use AR down payment invoice and Journal Entry will be created as below,

    1) Input AR down payment invoice $105 (include VAT) ;

    Dr / Cr

    AR $105 / Customer Deposit $100

    / VAT (tax) $5

    2) Incoming payment;

    Cash $105 / AR $105

    3) Input AR Invoice

    (AR $0 / VAT (tax) $0)

    Customer Deposit $100 / Sales Revenue $100

    I hope this helps you.

    Thanks,

    Kaori

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