How do I transfer the customer advance from one customer to another?

To write off vendor advance, you should first create an account and then record the write off. Here’s how to create a new account:

  • Go to Accountant on the left sidebar and select Chart of Accounts.
  • Click + New Account in the top right corner of the page.
  • Enter the Account Name as Advance Adjustment.
  • Select Payment Clearing as the Account Type from the Account Type dropdown.
  • Enter the Account Code and write a short description for the account, if required.
  • Click Save.

Once you have created an account, you can write off the advance. Here’s how:

  • Go to Purchases on the left sidebar and click Payment Made.
  • Select the vendor advance you want to adjust.
  • Go to More icon and click Refund.
  • Enter the necessary details.
  • Select the To Account as the Advance Adjustment account you had created.
  • Click Save.

Next, you have to record payment for the bill issued. To record payment:

  • Go to Purchases on the left sidebar and click Bills.
  • Select the vendor’s bill for whom you want to record payment.
  • Click Record Payment.
  • Enter the necessary details.
  • Select the account as Advance Adjustment in the Paid Through field.
  • Click Save.

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