• Registered: 08/27/2009
  • Posts: 6

Topic: Payment by stages

Our company is an IT service company. So payment wise, customer has to pay by stages. 30% before project starts, 30% upon finishing some parts, 40% when it is finished.

As for as my understand, only when i send invoice against Sales Delivery, then it will increase my accounts receivable. So can I input the payment after enter sales order? Then can i create invoice for these amount of upfront payment?

Thank you very much.

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Payment by stages

Yes  you can. You can just enter your payment and when you have created your invoices, you can use the payment for allocations of the invoices.

/Joe

  • Registered: 11/06/2009
  • Posts: 20

Re: Payment by stages

Hey

what is the purpose of allocation of payments after the payment is made. it seems like repetition.

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Payment by stages

When your customers send you a payment (or you send payments to suppliers), you don't need to (but you can) allocate the payments at once. Allocations means routing the payments to various invoices.
So you can accumulate the payments and when there are funds enough you can allocate your invoices.

/Joe