Payments on Account

article ID: 2022268 

There may be instances when you need to register a customer or supplier payment for a pro-forma invoice. In these cases there is no available invoice to which the payment can be linked. These transactions are commonly known as 'Payments on account'.

 



How to record a Customer Payment on Account:


1. Click on the View - Accounting - Journal Entry menu.

2. Click the Customer Receipts button.

3. Select the customer who has sent the payment and click OK.

4. In the Default receipts/payments accounts window, click the New (Ctrl + N) icon

5. A new window will appear in which you can enter the invoice no, invoice date, due date and payment terms. Enter your prefered text, i.e. 'Payment on Account', in the Invoice No. field and click OK.

6. After returning to the Default receipts/payments accounts window, you can enter the value of the customer payment.

7. Once the journal has been added to the ledgers, the transaction will appear as a credit entry on the Debtors Control Account (N/C 1100).

 

How to record a Supplier Payment on Account:

1. Click on the View - Accounting - Journal Entry menu.

2. Click the Supplier Payment button.

3. Select the supplier you have sent the payment to and click OK.

4. In the Default receipts/payments accounts window, click the New (Ctrl + N) icon

5. A new window will appear in which you can enter the invoice no, invoice date, due date and payment terms. Enter your prefered text, i.e. 'Payment on Account', in the Invoice No. field and click OK.

6. After returning to the Default receipts/payments accounts window, you can enter the value of the payment to the supplier.

7. Once the journal has been added to the ledgers, the transaction will appear as a debit entry on the Creditors Control Account (N/C 2100).


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