Invoice payment in forward. How to deal with it

rwobbenrwobben Member Posts: 4


We send every year on 1 januari our invoices to our clients.
But some of the clients pay in december the year before the invoice.

How can I deal with it with Waveapps.
I know that if I make a invoice I have to put in into a income account.



  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @rwobben.

    You're absolutely right! This money is actually a liability (in the eyes of your accounting) since you still owe that service to your client. You'll create a liability account with the "Customer Prepayments and Customer Credits" account type. When you receive that money in your bank account, categorize that deposit to this liability account. When you create the invoice on January 1st, record the payment for that invoice to that liability account instead of your credit card.

    That's all you have to do, your numbers will all match up.

  • rwobbenrwobben Member Posts: 4


    I will check if I understand this right :

    so let's say we have recieved the payment on 15/12/2017 on the Bank
    then I set this on the "Customer Prepayments and Customer Credits" account

    then on 1/1 I send the invoices and I can set this on the "Contributie" account
    and then I can set the payment on 1/1 or on 15/12 on the "Customer Prepayments and Customer Credit" account ?

    edited August 25, 2018
  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @rwobben.

    When you create your invoice and record the payment, you'll choose your prepayment account as the payment account. This will bring the balance of your prepayment account to $0.00 (you don't owe that service anymore), it won't add money to your bank account, and it'll record your income appropriately.

    I'm assuming "Contributie" is the income account you use for this invoice, is that right?

  • rwobbenrwobben Member Posts: 4

    yes. that is right.
    I try to figure out if I really understand what you mean that is why I asked this ?

  • rwobbenrwobben Member Posts: 4

    Can you help me step by step

    I have a customer which has payed on 20/09 a amount of 25 euro cash
    but that must be split in 2.50 of this year and 22.50 is for next year.

    What do I have to do exactly on which date and on which account ?
    The 2.50 should be on the Contributie account and the 22,50 schould be on the Vooruitbetaalde Contributie(Customer Prepayments and Customer Credits) account.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Sure thing, @rwobben. Before I do, I wanted to say that my question from earlier was just because I got confused by the Dutch account name. Sadly not a language I know much about at all.

    Set up

    First, you'll have to create that Customer Prepayments account. That's an account type for Liability accounts.

    Receiving the initial payment

    When you receive that payment of €25, enter it in your transactions. Use the Split Transactions button to separate it into parts. You can categorize €2.50 to your income account (or to an invoice if there is one), and the other €22.50 to your Prepayment account.

    Paying the invoice on January 1st

    When you create your invoice on the next January and record a payment, choose the Prepayment account as the Payments account, rather than your bank account, and enter a payment for €22.50.

    Let me know if you have any questions!

  • glargoglargo Member Posts: 3

    Hello I have the following:
    I received a downpayment of $2150 by Feb 5, I registered in Customer Prepayments - Downpayment
    later on Mar 5, I completed the job and created an Invoice by $3150. then I registered a Payment of $1000 from Downpayment account on Feb 5 and registered the last payment directly with check option. Everything looks ok, but when I checked the Account Receivables, I fond a transaction of payment on Feb 5 with a negative value and I am interested that this one appear on Mar 5 to avoid negative values in the Account Receivables and the effect in the Balance Sheet and because I want to register in the invoice the accurate date when the payment was done.

  • Katie_SilkinaKatie_Silkina Guest, Unconfirmed, Applicant, Member, Administrator, Moderator, Employers Posts: 73 admin

    hey @glargo good question! Can you confirm how you registered the original Customer Prepayment-Downpayment on Feb 5? Was this a transaction, invoice or a journal entry? Similarly - how did you record the $1000 payment on Mar 5th? Any insight into your workflow would be helpful.

    In terms of how this should appear on your reports, I'd recommend the following:

    Feb 5th
    1. Customer Prepay-Downpay (Liability account) : Credit $2150
    2. Bank account prepayment was deposited into: Debit $2150

    Mar 5th
    1. Customer Prepay-Downpay : Debit $1000 (decreasing the balance from the original prepayment)
    2. Sales/Income account: Credit $1000

    Caveat: this recommended workflow will change depending on how you are using Wave for this business workflow & does not incorporate A/R.

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