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4 Odgovori
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Tony

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.

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Ray Carnes (ray)
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Use your Customer Deposits (liability) account on the Invoice.

After paying the Invoice you will have a bank debit and a current liability credit.

You then, via a manual Journal Entry, reclass the liability to an AR credit when the time comes so it can be used to pay down one or more Invoices.

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Mubasher Mukhtar

Again, what about if we had issue Sales Order of $100,000 and the customer made an advance payment of $30,000. Upon delivery of the goods we have to generate a single invoice of $100,000/-. We can't make two invoices in this case. There is regulatory compliance of taxes. And what about we have to track the outstanding advances? there is no such report in Odoo

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Mubasher Mukhtar
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Your accountant is absolutely right; when you register payment in advance to a vendor, it will CR the bank and DB the A/P, which is wrong for reporting. The real entry should be bank CR and advances to supplier DR. It's very pathetic that Odoo simply can't properly handle the advances cases.

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Ray Carnes (ray)

Use the prepayment account on the Vendor Bill. Once paid, there will be a bank credit and a prepayment debit. Once the time comes to use the prepayment, reclass it to AP.

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Aldrin
Best Answer

Hi Tony,

I think this is quite complicated out of the box. You might need manual journal entries for this to happen.

Some third-party modules are handling this, not sure if that will work for you.

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Nikhil Nakrani
Best Answer

Hi Tony,

I hope you are doing well.

In Odoo accounting, you can handle by this way..

  1. Create the Advance Payment:
    • Create a new journal entry to record the advance payment received from the customer.
    • Debit the bank or cash account to reflect the increase in cash.
    • Credit a liability account (e.g., Deferred Income) to represent the advance payment received.
  2. Create the Invoice:
    • When you create an invoice for the customer, include the products or services being provided. 
  3. Allocate the Advance Payment from the Deferred Income account:
    • Apply the advance payment received to the invoice to allocate the amount from the liability account.
    • In the invoice, add a new line and select the Deferred Income account and allocate the amount in minus.
    • Odoo will automatically create a journal entry for the invoice

By the way, could you please try this option and let us know how it works, particularly in terms of how the Amount Due is calculated?

Thanks.

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Tony
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Hi Nikhil,

Thanks for the reply but im not sure I understood from step 3.
How do i apply the payment to the invoice? We used a liability account for the payment remember? So I cant reconcile because the invoice uses a receviable instead.

Also you said add a new line and select deferred income account. Im not sure what you mean. New invoice line or new journal item. Either way both dont seem to work. For the former, I can only select a revenue account and in the case of a new journal item, this would make the entry not balanced

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