FAQ: Advances (Prepayments)
Quick answers to common questions about recording and managing advances.
What is the difference between an advance and a payment?
An advance is money received or paid before an invoice or bill is issued. A payment typically settles an existing document. An advance sits as a credit balance until applied to a future invoice or bill. Both are recorded in the Payments section.
Can I apply a customer advance to only part of an invoice?
Yes. When you apply an advance to an invoice, you can apply the full amount, part of it, or none. The remaining balance stays on the customer's account for future invoices.
What happens if a customer's advance is larger than the invoice?
The excess balance remains on the customer's account. You can apply it to future invoices, refund it, or keep it as ongoing credit. The customer can also use it if they order again.
Can I use a vendor advance to pay a specific line item on a bill?
Advances are applied at the document level, not the line level. When you apply a vendor advance to a bill, it reduces the total amount due on that bill.
What account should I use for recording advances?
Use a liability account for customer advances (money owed back) and an asset account for vendor advances (money you paid in advance). Ask your accounting manager if you're unsure of the correct account.
Can I record an advance in a different currency than the contact's default?
Yes. When you record an advance, you can choose the currency. If it differs from the contact's preferred currency, Usystems will track the exchange rate so that when you apply it, the amount is correct.
What happens if I record an advance twice by mistake?
The advance will create two separate balances on the contact's account. You can correct this by adjusting the balance or recording an offsetting payment. Contact your admin if you need help reversing a duplicate entry.
Can I delete or change an advance after I record it?
You cannot directly delete an advance, but you can reverse it by recording a refund payment (for customer advances) or a recovery payment (for vendor advances). Your admin can help with corrections.
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