How do I transfer the customer advance from one customer to another?
To write off vendor advance, you should first create an account and then record the write off. Here’s how to create a new account:
- Go to Accountant on the left sidebar and select Chart of Accounts.
- Click + New Account in the top right corner of the page.
- Enter the Account Name as Advance Adjustment.
- Select Payment Clearing as the Account Type from the Account Type dropdown.
- Enter the Account Code and write a short description for the account, if required.
- Click Save.
Once you have created an account, you can write off the advance. Here’s how:
- Go to Purchases on the left sidebar and click Payment Made.
- Select the vendor advance you want to adjust.
- Go to More icon and click Refund.
- Enter the necessary details.
- Select the To Account as the Advance Adjustment account you had created.
- Click Save.
Next, you have to record payment for the bill issued. To record payment:
- Go to Purchases on the left sidebar and click Bills.
- Select the vendor’s bill for whom you want to record payment.
- Click Record Payment.
- Enter the necessary details.
- Select the account as Advance Adjustment in the Paid Through field.
- Click Save.