Payments on account

If a customer sends you a payment, or you send a vendor a payment, and you don’t have an invoice to allocate it to, you can record this as a payment on account. You can then use the payment on account at a later date to pay off an invoice. See Allocate credit notes and payments on account for more information.

If you or a customer have overpaid an invoice, you can record the payment against the invoice as normal and the extra amount as a payment on account.

To record a customer payment on account

  • 1. Go to Banking.
  • 2. From the New Entry menu, click Sale/Receipt.

You can also create a new receipt directly on the Banking page. If you choose to enter the receipt from here, you must select the correct bank account when entering the receipt details.

  • 3. Click Customer Receipt and complete the following information:
  • Indicates a required field.
*Customer* * Choose the customer who has made the payment.
Paid into Bank Account * Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
Method * Specify the payment method.
Date Received * Enter the date the payment was received.
Amount Received * Enter the total amount of the payment on account.
Your Reference (Optional) Enter a reference for this receipt.
  • 4. If your customer paid an invoice with part of this payment on account, select the relevant invoice.
  • 5. Click Save. To add another payment, open Save drop-down menu and click Add Another. Repeat as above.

To record a vendor payment on account

  • 1. Click Banking.
  • 2. Click the required bank account.
  • 3. Open the New Entry menu and click Expense/Payment.

You can also create a new payment from the Banking page. If you choose to enter the payment from here, you must select the correct bank account when entering details of the payment.

  • 4. Click Vendor Payment and complete the following information:
  • Indicates a required field.
*Vendor* * Enter either the company name or reference. As you start to type the list of vendors appears, choose the vendor you’ve paid.
Paid from Bank Account * Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
Method * Specify the payment method.
Date Paid * Enter the date you made the payment.
Amount Paid * Enter the total amount of the payment on account.
Your Reference (Optional) Enter a reference for the payment.
  • 5. If you’re paying an invoice with part of this payment on account, select the relevant invoice.
  • 6. Click Save. To add another payment, open Save drop-down menu and click Add Another. Repeat as above.