Enter an invoice paid in advance

With an advance payment, you receive an amount from a debtor, whereas you have not yet added an invoice in Profit or you pay an amount to a creditor even though you have not yet received an invoice.

You record this during the processing or entry of the bank statement.

The advance payment can be processed in two ways:

• Manually

  During the manual entry, you do not enter an invoice number. In this way you can enter the entry as an advance receipt or advance payment.

• Automatic

  When processing the bank statement, a payment cannot be reconciled. You can enter the payment as an advance receipt or advance payment.

In case of an advance payment to a creditor, the setting of the Automatic payment check box for the creditor is copied when processing the bank statement or general journal entry.

If after entering the advance payment you add the invoice, you reconcile this with the amount paid:

• If you add the invoice in a journal, you reconcile this directly with the payment.
• If you add the invoice in Profit Order management, Profit journalises it automatically in the integration journal (of the integration type). After this, you reconcile the invoice with the payment.

Enter an invoice paid in advance

For an advance receipt, you receive an amount from a debtor even though you have not yet added an invoice in Profit.

Example:

You have an agreement with a debtor that you will deliver goods each month. Each month, the debtor pays you a fixed amount on a fixed date.

In a particular month, you have not yet added an invoice for the delivery in Profit. So when processing the bank statement, you cannot reconcile the payment with an invoice. You process this as a proforma receipt.

To enter a proforma receipt manually:

1. Go to: Financial / Enter / Journal.
2. Check Financial year and Period. These are the financial year and the period to which you post the entry.
3. Select the journal.
4. Click on: Finish.
5. Enter the closing balance from the statement in the Check balance journal field. You see the Journal opening balance at the bottom of the entry window.
6. Enter the date of the statement line in the Date entry field.
7. Select the debtor in Account.
8. Enter the voucher number.
9. Do not enter an invoice number.
10. Enter the amount of the advance receipt.
11. Confirm that you want to enter the amount as an advance receipt.

    If you use the functionality for entering donations, you are first asked if you want to enter a donation. If you select No, you can enter the amount as an advance payment.

12. Click on: Finish.

Advance payment invoice

If you transfer an amount to a creditor without having received an invoice from it, you enter an advance payment.

Example:

You have ordered a product from a creditor by phone. The creditor informs you by telephone of the price to pay.

You transfer this amount directly without having received an invoice. For this, you record an advance payment.

To enter an advance payment manually:

1. Go to: Financial / Enter / Journal.
2. Check Financial year and Period. These are the financial year and the period to which you post the entry.
3. Select the journal.
4. Click on: Finish.
5. Enter the closing balance from the statement in the Check balance journal field. You see the Journal opening balance at the bottom of the entry window.
6. Enter the date of the statement line in the Date entry field.
7. Select the creditor in Account.
8. Enter the voucher number.
9. Do not enter an invoice number.
10. Enter the advance payment amount in Receipts.
11. Confirm that you want to enter the amount as an advance payment.

    If you use the functionality for entering donations, you are first asked if you want to enter a donation. If you select No, you can enter the amount as an advance payment.

12. Click on: Finish.