Apply an advance to an AR sales invoice—Accounts Receivable

Apply an advance payment to a customer AR sales invoice from the Receive Payments page or the Advances list. You can apply the full amount of the advance or a partial amount. You can also apply the advance to multiple AR sales invoices.

Apply advances from Receive Payments

1. Go to Accounts Receivable > All > AR sales invoices and select Add (circle) next to Receive payments - New!.
2. In the Payment information section, enter the Receipt date, when the advance will apply to the AR sales invoice.
3. Select Select AR sales invoices.
4. Select the AR sales invoices or memos that you want to apply the advance to.
5. Select Add and close.
6. Apply credits using one of the following methods:
   Apply an advance across multiple AR sales invoices

   1. Select Apply credits. 
      If you do not see the Apply credits option

      Apply credits is available when you receive a payment from a single customer only.

   2. Select the advance to apply.
      The total amount of the credits to apply must be less than the sum amount of the selected AR sales invoices. Adjust the Credits to apply amount as needed.
   3. Select Save.

      Credits you select and apply here are distributed across the selected AR sales invoices using the waterfall method. You can edit the Credits to apply for AR sales invoices.

   Apply an advance to a single AR sales invoice

   1. Select the Credits available amount for the AR sales invoice to see the list of available credits.
   2. Select the advance you want to apply.

      Any credit you select from here is applied in full. If the credit amount exceeds the amount of the AR sales invoice, edit the Credits to apply field accordingly.

   3. Optionally, adjust Credits to apply amount.
   4. Select Save.

      The full amount appears in the Credits to apply column and the Payment amount automatically adjusts accordingly.

   When you apply a credit using the Credits available link, the credit state changes to selected and the credit is essentially locked. This means that if there is a leftover balance on the credit, that amount is not available to apply to another AR sales invoice until you post the customer payment. If you want to apply the credit to more than one AR sales invoice selected in this payment, use Apply credits instead.
   Apply an advance to a specific line item

   1. Select Line details to drill down to the line items of a specific AR sales invoice.
   2. Select Credits available to drill down to credits.
   3. Select the advance that you want to apply.
   4. Optionally, adjust the Credits to apply amount.
   5. Select Save.
7. Optionally, update payment information and other posting details.
8. Select Post.

Apply an advance from the Advances list

You can apply a single advance to AR sales invoices from the Advances list.

1. Go to Accounts Receivable > All > Payments > Advances.  
2. Find the advance that you want to apply
3. Select Apply more next to the advance.

   The Select AR sales invoices for payment page pops up and shows all open AR sales invoices for the associated customer.

4. Select the AR sales invoices you want to apply the advance to.
5. Select Add and close.
6. The advance amount is applied to the selected AR sales invoices using the waterfall payment method.

   You can adjust the amount to apply in the Credits to apply field.

7. If you are accepting payment at the same time, enter the payment amount in Amount received, under Payment Information.

8. If necessary, you can adjust the Payment amount for individual AR sales invoices to change the distribution.

   Optionally, edit payment details such as Account, Date received, and Payment date.
9. Select Post.