Payment allocation for multiple invoices

Bongani

Good day
A customer of mine paid me upfront for 3 months worth of work. I linked the R3,000 payment against the R1,000 first invoice. Now how do I link the remaining invoices to the same payment? The new invoices will be created in month 2 and month 3.

JulianP

Hello @Bongani !

You have 2 options in this case:

1. You can record a pre-payment by creating a new Liabilities and Credit Cards account on your Chart of Accounts page. When you'd like to record the pre-payment against your invoice(s), you can do so by heading over to Sales > Invoices and select Record a payment next to your customer's invoice. For the Payment method, choose Other, and for the Payment account, choose the account you created via your Chart of Accounts. This method allows you to reduce the pre-payment account as you clear your receivables. We have a great guide on this here: How to handle invoice deposits or pre-payments

2. Alternatively, you can split your customers initial upfront payment transaction. To learn how to split a transaction in Wave, click here: How to split a transaction
   

Bongani

Thank you so much @JulianP, this really helps.