Every time you receive advance payments from clients, it is important to send them a Payment Receipt. A Payment Receipt serves as proof that the payment has been made and received. It is also necessary for financial record keeping, taxation, and potential dispute resolution in the future.
Go to sidebar > Accounting > Payment Receipts > Click on "Create Payment Receipt”
You will see two options: Payment Receipt & Client Advance.
Select "Client Advance" to record an advance payment received from a client.
Step 1: Select Client
Firstly, select the client for whom you want to create a Payment Receipt. Other details such as Payment Receipt No., Currency, and Receipt Date will be automatically filled. You can edit them if required.
Step 2: Add Payment Record
Just fill in the payment details such as the total amount received, transaction charges (if any), TDS (if applicable), payment date, payment method, and the account in which you received the payment.
Step 3: Settle Against Unpaid/Future Invoices
Now you can use this advance to record payment of future invoices raised against that client.
While recording payment, you will get the option to use the credits.
Just add the Advance Amount you wish to use for this invoice.
Click ‘OK’
That's it! Creating Payment Receipts for Advance Received is now a breeze with Refrens!