How do I record an advance payment I’ve made to a vendor?

You can record an advance payment made to a vendor as credits and apply this amount on a bill that you later raise in his name.

• Select the concerned vendor from the Contacts tab.
• Click on New Transaction and select Bill payment.
• Enter the amount and save it. This excess payment will be stored as unused credits.

Now, these credits will be displayed on top all unpaid bills in favor of this vendor as shown below. Applying them to the bill will reduce the amount due accordingly.