How do I apply a customer’s advance to a different customer’s invoice?

You cannot directly apply the customer advance of one customer to another customer’s invoice. However, you can follow these steps to record the transaction:

You must first create an account to record the customer advance. Here’s how:

• Go to Accountant on the left sidebar and select Chart of Accounts.
• Click + New Account.
• Enter the Account Type as Payment Clearing and Account Name as Adjustment Account.
• Click Save.

Next, you must record the customer advance that you received as Refunded from the Sales module. Here’s how:

• Go to Sales on the left sidebar and click Payments Received.
• Select the advance payment that you want to apply to another customer’s invoice.
• Click More and select Refund.
• Select the Adjustment Account (Payment Clearing Account) in the From Account field.

Next, you must record a credit note for the customer. Here’s how:

• Go to Sales on the left sidebar and click Credit Notes.
• Select the customer for whom you want to apply the advance amount.
• Enter the necessary details.
• Select the Adjustment Account (Payment Clearing Account) in the Account field.
• Click Save as Open.

Here’s how to apply the customer advance amount to the Invoice:

• Go to Sales on the left sidebar and click Invoices.
• Select the invoice associated with the other customer and click Record Payment.
• Enter the necessary details.
• Select the Adjustment Account (Payment Clearing Account) in the Deposit To field.
• Click Record Payment.