In accounting. How do I manage situations when business allows a customer to pay in advance for services. So in this case the customer can have an outstanding balance before he/she even requests for a service.
This is the only way I know. When the payment/deposit is made in the customer account. I create a new payment into the bank journal where the payment was made and when services are rendered, I create the invoice and reconcile the invoice with the payment.
This is fine. Problem is the accountants I work with (and myself) dont agree with the entries made and I cannot modify the behaviour. When the payment is made, it should be considered a liability to the company and as such a liability account should be credited. Instead the recevable acc is credited. I would use a manual miscellaneous entry so I can credit the liability account except now you cant reconcile this entry with the invoice to mark it as paid.
Anyone with a similar situation who can help? I would prefer a solution without custom code if possible.
