Recording Client Advances and Reconciling Them Against Future Invoices
Every time you receive advance payments from clients, it is important to send them a Payment Receipt.
A Payment Receipt serves as proof that the payment has been made and received. It is also necessary for financial record keeping, taxation, and potential dispute resolution in the future.
Let's see how you can create Payment Receipts for Client Advances and reconcile them against future invoices.
Go to Sidebar > Accounting > Payment Receipts > Click on Create Payment Receipt:
You will see two options: Payment Receipt & Client Advance:
Select Client Advance to record an advance payment received from a client.
Firstly, select the client for whom you want to create a Payment Receipt. Other details, such as Payment Receipt No., Currency, and Receipt Date will be automatically filled. You can edit them if required.
Just fill in the payment details such as the total amount received, transaction charges (if any), TDS (if applicable), payment date, payment method, and the account in which you received the payment:
Add any additional details such as notes, contact details, signatures, etc., and click "Save & continue."
You can use this advance to reconcile future invoices raised against that client.
This can be done in two ways:
A) From Invoice Preview Page
B) From Payment Receipt Edit Page
Let's see how:
A) From Invoice Preview Page
While recording a payment from the invoice preview page, you will get an option to use the credits. These credit amount includes the advance payment as well.
When you click on "Use Credits," you will see the following pop-up:
Just add the Advance Amount you wish to use for this invoice, click ‘OK', and you are good to go!
B) From Payment Receipt Edit Page
You can also reconcile invoices against Client Advances from the Payment Receipt edit page as well.
For that, just go to the Payment Receipt you created for the Advance Payment you received from the client, and click "Edit":
On the edit page, go to the Select Unpaid Invoice section > select the invoice/s you want to reconcile > click Save & Continue:
That's it!
If you still have questions, feel free to drop an email at care@refrens.com OR message us on live chat support for quicker assistance!
A Payment Receipt serves as proof that the payment has been made and received. It is also necessary for financial record keeping, taxation, and potential dispute resolution in the future.
Let's see how you can create Payment Receipts for Client Advances and reconcile them against future invoices.
Recording Client Advances
Go to Sidebar > Accounting > Payment Receipts > Click on Create Payment Receipt:
You will see two options: Payment Receipt & Client Advance:
Select Client Advance to record an advance payment received from a client.
Step 1: Select Client
Firstly, select the client for whom you want to create a Payment Receipt. Other details, such as Payment Receipt No., Currency, and Receipt Date will be automatically filled. You can edit them if required.
Step 2: Add Payment Record
Just fill in the payment details such as the total amount received, transaction charges (if any), TDS (if applicable), payment date, payment method, and the account in which you received the payment:
Step 3: Add Additional Details
Add any additional details such as notes, contact details, signatures, etc., and click "Save & continue."
Reconciling Client Advances Against Future Invoices
You can use this advance to reconcile future invoices raised against that client.
This can be done in two ways:
A) From Invoice Preview Page
B) From Payment Receipt Edit Page
Let's see how:
A) From Invoice Preview Page
While recording a payment from the invoice preview page, you will get an option to use the credits. These credit amount includes the advance payment as well.
When you click on "Use Credits," you will see the following pop-up:
Just add the Advance Amount you wish to use for this invoice, click ‘OK', and you are good to go!
B) From Payment Receipt Edit Page
You can also reconcile invoices against Client Advances from the Payment Receipt edit page as well.
For that, just go to the Payment Receipt you created for the Advance Payment you received from the client, and click "Edit":
On the edit page, go to the Select Unpaid Invoice section > select the invoice/s you want to reconcile > click Save & Continue:
That's it!
If you still have questions, feel free to drop an email at care@refrens.com OR message us on live chat support for quicker assistance!
Updated on: 03/06/2025
Thank you!