AR down payment invoice and AR invoice

[Former Member]

Once I use 2 or 3 AR down payment invoices for different due date, do I need to create AR invoice again?

If yes, what are the JE transaction detail in AR down payment invoice (Dr. AR Cr. Customer Deposit) and AR Invoice (Dr. AR Cr. Sales). Since AR down payment posted to Customer account and showed in aging.

If not, then where is the Sale JE? All "Drop Ship" SO to Invoice.

The benefit for AR down payment that will remind you how much to collect without affecting Cost or Inventory, but the JE confused me now. If AR down payment equals Invoice then when we generate the SALES transaction?

[Former Member]

Hi Lily,

Yes, you need to create AR Invoice.

For example, I use AR down payment invoice and Journal Entry will be created as below,

1) Input AR down payment invoice $105 (include VAT) ;

Dr / Cr

AR $105 / Customer Deposit $100

/ VAT (tax) $5

2) Incoming payment;

Cash $105 / AR $105

3) Input AR Invoice

(AR $0 / VAT (tax) $0)

Customer Deposit $100 / Sales Revenue $100

I hope this helps you.

Thanks,

Kaori

[Former Member]

Hi Kaori,

I think this is what I want for the whole thing. I have few questions:

1. Where is the setting in B1 that I can offset "Customer Deposit" when I issue the Drop Ship legitimate Invoice when I release the Drop Ship goods to them? I tested AR Down Payment Invoice and applied the incoming payments should be no problem, only the last transaction I did not know yet.

2. Looks like AR Down Payment Invoice is temporary invoice like PO clearing account. Only AR Invoice is the REAL invoice for B1. I will use SO convert to AR-Invoice when we release the Drop Ship, there will be no record or relationship between SO or AR Invoice with AR Down payment Invoice, right?

Thanks to clarify my questions.

[Former Member]

Hi Lily,

answer your question;

1) As Saying without considering Drop Ship, it is on BP master accounting tab ; Down payment clearing account.

But I usually normal AR Invoice for Drop Ship when the drop ship goods are released.

2) I assume that AR Down Payment function is for advance payment. As you know we need Invoice for Incoming payment and reconciliation. If there are no AR Down payment documents, we have to create Incoming payment by "Payment on Account" and it posts to receivable account.

If you create SO at first and create AR Down Payment copying from SO, it has a relationship between them. After that if you also create AR Invoice copying from same SO, it has a relationship between them. Although there is no direct relationship between AR Invoice and AR Down Payment Invoice, you can trace from AR Down Payment => SO => AR Invoice.

Regards,

Kaori

[Former Member]

Hi Kaori,

Sounds great! I will test it. Thanks.