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Mammonist

How to handle advance payments

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Sometimes I get paid half up front for work I am about to do. How do I handle this when all I have so far is an order in Express Invoice? Do I need to convert to invoice? Any other options? Thanks. 

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I would explore using a credit note.

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Thanks. Forgive me, but I'm not clear on what a credit note is, and I couldn't find a definition in the manual. Is it simply a way of taking account of an advance payment from a customer? Thx. 

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A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a credit memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions.

I don't know if this would apply in your case.  I'm not sure if EI allows you to apply it towards an Order or not.  But it would be worth playing with to see if it would work in your case.  It basically applies a credit to the customer's account.  But that might get messy when it comes time to close the invoice.

I don't think you can apply a payment to a customer's account.  EI is pretty invoice driven so it might not know where to put that money in the end.

That all being said, if you're accepting money from a customer, though, you should probably have an invoice for at least the portion that they paid.  You just really need to think about how you want EI to work for you in your particular business situation and what will make your books the most transparent and streamlined.

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I may be wrong, but I think you can accept a payment to a customer without applying it to a specific invoice. When you create an invoice it will automatically appear on the invoice as an advance.

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