Recording advance payments

Recording payments that happen before the creation of the invoice they are related to, is possible in several ways in Sage Active, depending on the legislation.

Each legislation uses an advance payment ledger account. However, they differ in which amount is recorded on this account. This is either the taxable amount or the amount including taxes.

Because of this, Sage Active provides different kinds of ledger account natures for each legislation, separated into customer and supplier advance payment ledger accounts:

• French legislation: Customer advance payment (tax included) and Supplier advance payment (tax included).
• German and Spanish legislation: Customer advance payment and Supplier advance payment.

To assign the correct advance payment nature to an advance payment ledger account:

1. Open the Chart of accounts.

   Settings > Accounting – Chart of accounts

2. Edit the ledger account of your choice (  ).
3. Choose the correct Nature from the advance payment options provided for you legislation.
4. Save the changes.

Practical examples that show the most common way of creating the journal entries for these advance payment are available for French, German and Spanish legislation individually.