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Accounting

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Payments on account

If a customer sends you a payment, or you send a supplier 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 allocate the payment on account at a later date to pay off an invoice.

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, then click the required bank account.
  • 2. Click New Entry, then click Sale / Receipt.
  • 3. Within the Customer Receipt tab, complete the following information:
Customer *  Enter either the company name or reference. As you start to type the list of customers appears, 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.
Date Received * Enter the date the payment was received.
Reference (optional) If required, enter a reference for this receipt.
Amount Received * Enter the total amount of the payment on account.

* These details are compulsory.

  • 4. If your customer paid an invoice with part of this payment on account, select the relevant invoice.
  • 5. Do one of the following:
  • To save the payment on account, click Save, then click Yes.
  • To save and add another payment, click the Save arrow, then click Add Another then repeat from step 3.

If you use the VAT Cash Accounting Scheme, you’re prompted to choose the VAT rate. This is because VAT is calculated at the point of payment. If prompted, choose the correct VAT rate then click Yes.

To record a supplier payment on account

  • 1. Go to Banking, then click the required bank account.
  • 2. Click New Entry, then click Purchase / Payment.
  • 3. Within the Supplier Payment tab, complete the following information:
Supplier *  Enter either the company name or reference. As you start to type the list of suppliers appears, choose the supplier 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.
Date Paid * Enter the date you made the payment.
Amount Paid * Enter the total amount of the payment on account.
Reference (optional) If required, enter a reference for the payment.

* These details are compulsory.

  • 4. If you’re paying an invoice with part of this payment on account, select the relevant invoice.
  • 5. Do one of the following:
  • To save the payment on account, click Save, then click Yes.
  • To save and add another payment, click the Save arrow, then click Add Another then repeat from step 3.

If you use the VAT Cash Accounting Scheme, you’re prompted to choose the VAT rate. This is because VAT is calculated at the point of payment. If prompted, choose the correct VAT rate then click Yes.

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