Customer receipts and payments on account

How this works

• Only use this for money received from a customer being used to pay a sales invoice.

• To pay one or more invoices, enter the details of the receipt and choose the invoices that receipt is paying.

• If you don't know which invoice the receipt is paying, save the receipt as a Payment on Account. Match the payment to an invoice later.

• If the customer has overpaid, there are two things you can do

  • Save the remaining amount as a Payment on Account and use it to pay another invoice later.

  • Refund the money to the customer. Here you still save the remaining amount as a Payment on account.Then create a refund transaction which you match to the refund.

• If the money will never be used to pay a sales invoice, use the Other Receipt instead.

Create receipts from a bank feed or import from a statement

If you import transactions directly from your bank account, either from a bank feed from your statement, you can

• Save the receipt as a payment on account and match it sales invoices later.

• Match the receipt directly to sale invoices

• Save any overpayment as a payment on account to match to a refund later.

Save as a payment on account

1. From Banking, select the Transactions link on the relevant bank account.
2. Find the receipt.
3. Choose the customer from the For drop-down list.
4. Choose Payment on account from the What drop-down list.
5. Select Create.

The receipt saves as a Payment on account. You can match this to sales invoices later.

Match a receipt to invoices

1. From Banking, select the Transactions link on the relevant bank account.
2. Find the receipt.
3. Select Match.
4. Select the invoice or invoices you want to pay.
5. If you are part-paying an invoice, change the Payment amount in section 2.
6. When the receipt is fully allocated, select Match.

Save an overpayment

This explains how to save any left over amount from the receipt.

1. From Banking, select the Transactions link on the relevant bank account.
2. Find the customer receipt.
3. Select Match.
4. Select the invoice or invoices you want to pay.

5. Select New Transaction in section 2. Choose Payment on Account. This allow you to match to another invoice or refund later.

6. When the receipt is fully allocated, select Match.

Enter a customer receipt

Use this to record single customer receipts, when you are nor importing transactions from a bank feed or importing from a bank statement.

1. From Banking, open the relevant bank account.
2. Choose New Entry, then Sale / Receipt.

3. Enter the details of the Customer, Bank account, Date, Method and Amount. Entering a reference makes it easier to track your receipt.

   We show you the total amount your customer owes you and your bank account balance.

4. Select the check box next to each invoice you want to pay.
5. Save the receipt. If there is a remaining amount, choose to save it as a Payment on Account.

Part pay a sales invoice

At times, the customer may pay you less than the full value of the invoice, They may be paying in instalments for example. To record this

1. Select the Paid column for the invoice you want to part pay.

2. Enter the amount of receipt as the Amount to pay.

3. Choose Apply.

The outstanding amount of the invoice updates and the invoice shows as part paid.

Include a discount

Sometimes a customer pays you less than the value of the invoice because you have given them a discount.

1. Select the Discount Column.

2. Enter the amount of the Discount and adjust the Amount to pay to match.

3. Choose Apply.

Manage an overpayment

This explain how to what to do when a customer overpays. You can either save the remaining amount as a Payment on Account. Use this to pay a future invoice. Alternatively, send a refund to the customer. To do this create a refund and match to the overpayment.

Save the overpayment

1. Choose the invoices you want to pay and Save.

2. Choose Yes when asked to save as a Payment on  Account.

Refund the overpayment

Create a refund and match to the overpayment saved above.

1. From the Bank account, choose New Entry, then Purchase Payment.

2. Select the Customer Refund tab.

3. Choose the Customer and complete the remaining details.

4. The details on the Payment on Account shows in the rows at the bottom. Choose the check box for the Payment on account and Save.

Read more about refunds

Add a VAT rate

You only need to do this if you use VAT Cash Accounting scheme. This is because VAT is calculated when you receive the payment and not from the invoice. Choose the correct VAT rate and click Yes.