Clearing a Down Payment Using the Payment Program
After you post the closing invoice and override the payment block, you can have the payment program clear the down payment. The payment program clears the down payment and pays open items due reduced by the down payment. When the down payment is entered, the payment block in the down payment item is automatically set by the system.
You require collection authorization for the customer account to enable the payment program to debit the amount from their due minus the down payment amount.
Your customer has ordered a machine from you for $34,200. Two months before production begins, they are to make a down payment of a third of the value of the ordered goods ($11,400). The rest is paid on delivery. You receive a down payment for 11,400 USD. You send your customer the closing invoice once he has received the machine.
If you have already posted the down payment to the customer account and the special G/L account "Down payments received", you can clear the down payment as follows: