Explanation: An advance is a payment to the salesperson before an invoice is processed. They are entered for a salesperson through Bill-New option by selecting ‘Advance’ under the classification field and entering the amount of the advance as a positive number. This will show as a payable to the salesperson.
After the advance is recorded through Bill-Pay and paid through Bill-Checks, the system will then automatically show this payment as an advance (represented by a negative payable). After the actual invoice is received and recorded, the advance can then be used to reduce the check amount when the invoice is paid.
To fully process a salesperson’s advance there are three steps (New, Pay, Checks).
New: New is always the first required step. Create a new bill for the appropriate salesperson and denote this is an advance payment by selecting ‘Advance’ under classification. Once completed, these funds flow into Pending Advances and Unpaid Pending Advances.
After the advance is recorded through Bill-Pay and paid through Bill-Checks, the system will then automatically show this payment as an advance (represented by a negative payable). After the actual invoice is received and recorded, the advance can then be used to reduce the check amount when the invoice is paid.
To fully process a salesperson’s advance there are three steps (New, Pay, Checks).
New: New is always the first required step. Create a new bill for the appropriate salesperson and denote this is an advance payment by selecting ‘Advance’ under classification. Once completed, these funds flow into Pending Advances and Unpaid Pending Advances.
Pay: Record the advance bill using cash (handwritten check or EFT) or check. Select the appropriate salesperson to pay from the list. Select the advance, which will be listed among any other invoices and Select Process. The advance amount will now come out of Pending Advances and go into your Advance on Purchases.