Recording a customer advance or downpayment

Sometimes you may ask your customer to make a partial advance payment for a service you will complete in the future.

An example

Suppose you’ve agreed with your customer to receive 5,000 SAR as an advance payment today.

Here’s how you will record these transactions:

1. Create a Proforma invoice for 5,000 SAR requesting the advance payment

1. Go to Quotes and Proformas on the left side menu, then click Create quote.
2. Click on the Document template selector, and choose Proforma Invoice.
3. Complete the Proforma invoice details by adding relevant line items.

You can now then either send the proforma invoice to your customer through Wafeq to request payment, or mark it as Sent if you’re sending it as a PDF manually. At this stage, no revenue is recognized in your Profit and Loss.

2. Convert the Proforma invoice to an invoice

When the customer pays you the advance:

1. Convert the Proforma invoice to an invoice by clicking the To invoice button on the Proforma Invoice.
2. Send the invoice to your customer
3. Record the advance payment against the invoice.