Hello, Step 1: Create an Account for Advance Payments 1. Go to the "Chart of Accounts" section. 2. Create a new account under the "Liabilities" section and name it "Advance for Customer." 3. Set the account type to "Other Current Liabilities" and the detail type accordingly. 4. Name the account clearly and set the opening balance date (e.g., January 1, 2020). 5. Save the account details. Step 2: Create an Item for Advance Booking 1. Navigate to the "Products and Services" section. 2. Create a new service item and name it "Advance Booking Service." 3. ATTENTION: Link the income account for this item to the "Advance for Customer" account created earlier. 4. Ensure that the details are correctly entered, and save the service item. Step 3: Record Advance Payment Received 1. Go to the "Customer" section and select "New Payment." 2. Choose the customer and input the payment date. 3. Specify the payment method (e.g., cash, check) and enter transaction details like the reference number. 4. In the "Products/Services" section, select "Advance Booking Service." 5. Enter the quantity and rate to calculate the payment amount. 6. Save the transaction. Step 4: Record Service Provided 1. Open the "Invoice" section and create a new invoice for the customer. 2. Input the date when the service was provided and choose the "Advance Booking Service" item. 3. Specify the quantity, rate, and amount to reflect the service provided. 4. Save and close the invoice. Point to be noted that in amount text box enter amount with negative value ( i.e -500 ) Final Review: • Check the balance sheet to ensure that the "Advance for Customer" account reflects the correct liability after recording the payment. Thanks, Sheikh Nasir PAK BOOKKEEPING SERVICES.
