Receipt Entry For Advance

Overview

The Receipt Entry for Advance (against Sales Order) in DIGITZ ERP is used to record advance payments received from customers before goods or services are delivered or invoiced.
It allows users to collect and track advance amounts securely, link them to specific Sales Orders, and automatically adjust them later when a Sales Invoice is generated.

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Purpose

To manage customer advances efficiently by linking received payments directly to their corresponding Sales Orders, ensuring that every advance amount is traceable and properly adjusted during invoicing.

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How It Works

• When a customer makes an advance payment for an order, a Receipt Entry is created with the type set as Advance (against SO).
• The user selects the Customer and the related Sales Order to which the advance payment belongs.
• The Payment Mode determines whether the payment is received in Cash or Bank, and the corresponding account is selected automatically based on configuration.
• The system records the transaction by crediting the Customer Advance Account (or Receivable Control Account) and debiting the Cash/Bank Account.
• The advance amount remains linked to the selected Sales Order until it is later adjusted against a Sales Invoice.
• During invoicing, the system fetches available advances for that customer and allows the user to allocate the amount, ensuring accurate billing and accounting.

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Steps to Record Advance Receipt

1. Go to Accounts → Receipt Entry → New.
2. Set Receipt Type to Advance (against SO).
3. Select the Customer from whom the advance is received.
4. Choose the corresponding Sales Order for which the advance is being made.
5. Select the Payment Mode (e.g., Cash, Bank Transfer, Cheque).
6. Enter the Amount Received and Posting Date.
7. Save and Submit the document.

Once submitted, DIGITZ ERP will automatically create ledger postings and tag the advance to the selected Sales Order.

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Posting Behaviour

• Debit: Cash/Bank Account
• Credit: Customer Advance Account

When a Sales Invoice is later created for the same Sales Order, the system allows automatic adjustment of the recorded advance, transferring the balance from the Customer Advance Account to Accounts Receivable, reducing the amount due.

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Integration

The Receipt Entry for Advance (against SO) integrates with:

• Sales Order – Links the advance payment to the specific order.
• Sales Invoice – Allows adjustment of advance during invoicing.
• Customer Ledger – Tracks advances and adjustments for each customer.
• Bank Reconciliation Module – Matches recorded advances with actual deposits.

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Conclusion

The Receipt Entry for Advance (against SO) in DIGITZ ERP provides an accurate and efficient way to handle customer advance payments.
By directly linking each advance to its Sales Order, it ensures smooth adjustment during invoicing, eliminates manual tracking, and maintains complete financial transparency.