Advance payment for multiple invoices for multiple accounts

David Gillam dave at davegillam.org
Fri Jul 11 08:58:56 EDT 2014


Donna,

I'm not an accountant, so my answers may not fit with proper accounting methods, but...

One way would be:

Create an asset account for the client, and put the overage into that account.  As charges occur that need funding from the prepayment, pay those invoices from this asset account.

In a similar, but different way, I have a client who lumps payments for multiple invoices together in a single check.  Sometimes, what they pay doesn't exactly match any specific combination of outstanding invoices.  I apply payments like this:

1) Pay the oldest invoice in full.  Repeat until there is an invoice that can only be partially paid with the remainder of the payment.
2) Notify the client if the remaining invoice is overdue, and how much needs to be paid to clear it.

Another client has sometimes overpaid me.  I apply such payments like this:

1) Pay the invoice in full.
2) Open a new invoice for $0.
3) Apply the remainder of the payment to this new $0 invoice.
4) Use this "outstanding" invoice for future charges, which will eventually outweigh the credit, and bill the client accordingly.

You could use this method for your case, if you create a $0 invoice for each of the companies involved in the prepayment situation--possibly equally split, but however the client agrees to.

Please keep me in mind for any computer help or services you may need!  dave at davegillam.com 

Cheers!

Dave


On Jul 11, 2014, at 6:33 AM, Donna Pfeifer <donna32132 at yahoo.com> wrote:

> I have a client who has 4 companies. I have been invoicing and billing each company separately.
> 
> Now they are sending me a check in advance to cover work currently being done for two separate companies. There may be a balance left over which will be put towards future jobs.
> 
> How do I process this properly?
> 
> Thanks in advance,
> 
> Donna
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David
Gillam Data Services, Inc. - Computer Training & Support
dave at davegillam.com | www.davegillam.com | 972-383-9391



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