Forum Discussion

SamanthaG's avatar
SamanthaG
2 years ago

Invoicing for advanced payments

Hi There

We are a small construction company which has a few clients at a time. We invoice clients for material and labour costs plus also sometimes we add in a line for "advanced payments for the next invoice" to ensure we are always in positive cash flow and dont use our own money to fund the jobs. Now how is the correct way to invoice this? Do i make a seperate invoice for the advanced payment? The advanced payments are going towards the next invoice and so on so I need to allocate the payment when they come in to the next invoice when i make that. 

 

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    2 years ago

    Hi SamanthaG, 

     

    Thanks for posting and welcome to the Community Forum. 

     

    I understand the need to record an advance payment for your use case. Unfortunately, the application does not have an innate feature to handle this. Generally, all sales payments need to be connected to an invoice or a sales order. In my understanding, the best way to handle this is to record the overpayment together with the final payment on the latest invoice. This will result in the customer having credit for overpayment that can be used in other invoices. However, this will not appear in the invoice. Another option is to record the partial payment right after creating the invoice. 

     

    Let us know if you require any further assistance with this. We're happy to help.  

     

    Thanks,
    Genreve

     

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