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cmlleri_
Level 1

How to Record Advance Payment from Customer? Should reflect on the Balance Sheet as a Liability under Client Advances.

Hi. How do I record a advance payments from clients? I know the negative accounts receivable method. But how do I do it that it should reflect on my balance sheet as a liability (advances from client), instead of a negative AR?

1 Comment 1
Rustler
Level 15

How to Record Advance Payment from Customer? Should reflect on the Balance Sheet as a Liability under Client Advances.

Create a liability account called customer deposits

create a service type item called custdep and link it to the customer deposit liability account

use that item when take a customer deposit

 

when you sell, list the items being sold

on the last line use the customer deposit item, set the qty to a negative one and enter the customer deposit amount

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