HOW TO RECORD ADVANCE PAYMENT FROM CUSTOMER

FASTPAYFASTPAY Member Posts: 3

HELLO BUSINESS MEN
HOW TO RECORD ADVANCE PAYMENT FROM CUSTOMER IN WAVE SOFTWARE. I HAVE A BUSINESS AND COULD NOT SETUP ACCOUNT . CAN ANYBODY HELP ME HERE

Comments

  • MikegMikeg Member Posts: 199 ✭✭

    You would need to create a short term liability account for Customer Advances. When you record an amount received in advance, debit Cash and credit the Customer Advance. When you have completed the transaction (earned revenue), you would recognize the revenue by debit Customer Advance and credit Sales. This is accrual basis accounting. You recognize revenue when earned (not necessarily received) and expenses when incurred (not necessarily paid). This may be different than your method of accounting for tax purposes.

  • FASTPAYFASTPAY Member Posts: 3

    Hello Mikeg,
    Thank you for the response. I still have problem setting up my account with WAVE. I have a mobile popup portal where I made resellers and agents, I add fund to reseller or agent portal and they make transactions( they recharge their customers mobile, and the balance reduces accordingly). what I need to do in WAVE is to maintain ledger of individual resellers and agents.WAVE system enables me to record sales and only I can record the payment. But the case is different with my business. can you guide me in this regard.
    Many thanks

  • MikegMikeg Member Posts: 199 ✭✭

    FastPay
    I not quite sure I understand your business model. Possibly use the invoicing option? Maybe one of the Admin's here can help like @Samd. Sometimes you may need the support of Excel if you are trying to track accounts. I have seen that with subscription revenue. We use Wave in conjunction with Excel and make a journal entry to recognize revenue. Best of luck.

  • FASTPAYFASTPAY Member Posts: 3

    Thank You Mikeg,
    I need the features like the banks give statement to their customers.I also need to prepare accounts as below format
    CUSTOMER ABC
    DATE................PAYMENT RECEIVED........SALES..........BALANCE
    01/01/2019....................500 USD..............200 USD.......300 USD
    02/01/2019..................0 USD ....................100 USD........200 USD
    03/01/2019................300 USD...................50 USD.........450 USD

    I JUST NEED THIS KIND OF TRANSACTION AND STATEMENT.
    YOUR GUIDANCE WILL BE HIGHLY APPRECIATED
    FROM NEPAL

  • MikegMikeg Member Posts: 199 ✭✭

    Fastpay,
    I would try using the invoicing feature of Wave. It does do customer statements. You can have two companies. One to do your tax reporting and one to handle the billing and customer statements. I'm not as familiar with that aspect. Check with an administrator here. I'm sorry I couldn't help anymore. Best of luck

  • pixelstuffpixelstuff Member Posts: 2

    @Mikeg said:
    Fastpay,
    I would try using the invoicing feature of Wave. It does do customer statements. You can have two companies. One to do your tax reporting and one to handle the billing and customer statements. I'm not as familiar with that aspect. Check with an administrator here. I'm sorry I couldn't help anymore. Best of luck

    @FASTPAY said:
    Thank You Mikeg,
    I need the features like the banks give statement to their customers.I also need to prepare accounts as below format
    CUSTOMER ABC
    DATE................PAYMENT RECEIVED........SALES..........BALANCE
    01/01/2019....................500 USD..............200 USD.......300 USD
    02/01/2019..................0 USD ....................100 USD........200 USD
    03/01/2019................300 USD...................50 USD.........450 USD

    I JUST NEED THIS KIND OF TRANSACTION AND STATEMENT.
    YOUR GUIDANCE WILL BE HIGHLY APPRECIATED
    FROM NEPAL

    I made a similar request a year or so ago, and continued using my old software in the mean time, but still haven't seen any related improvements. I have customers that like to overpay (rounded amounts) and some that pay multiple invoices all at once. Wave doesn't handle either scenario very well compared to Quickbooks Online.

    Quickbooks Online maintains a running customer balance and a discrete list of transactions for each customer view. So you can see the payments, invoices, and quotes all in order. If they over pay, the payment is there creating a positive balance on their account and waiting for a new invoice to be created to apply the payment to.

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