How Advances Work in Sage Intacct
It is not uncommon for people to collect monies in advance or to make a payment in advance. In Sage Intacct, it has an Advances function that can be used to receive or apply payment without creating an invoice first.
Where can Advances be used?
The Advances function is available in both Accounts Payable and Accounts Receivable so that prepayments and retainers can be logged into the system. In Accounts Payable, Advances follow this workflow:
In Accounts Receivable, the workflow is similar, but there are a few key differences as you can see below:
Creating Accounts Payable Advances
- Go to Accounts Payable > All tab > Payments and click the + sign next to Advances.
- Click Vendor ID and select a vendor.
- In the Payment method, select the method of payment.
- Select the Bank from which to draw the funds for the advance payment.
- In Description, enter any note you want to store with this record.
- You can have Intacct add dimension values directly to each line item, where needed, by selecting default values to auto-fill each dimension in a line item.
- For each line in Items, set the following:
- Click the GL offset account pick list and select an account to receive the expense.
Note: We recommend setting up a dedicated GL Account if you have a lot of advances.
- Under Amount, type the amount of the expense.
- To add a note about this item, in the Memo, enter any information you want to store with this entry.
- Click a dimension drop-down, and select an appropriate value, as needed. If you’ve set a default value for a dimension, you can override it here on a line-by-line basis.
- Click Save.
After an advance is approved, and any checks are confirmed to the General Ledger, you can apply the advance as a credit to a bill on the Pay Bills page.
Creating Accounts Receivable Advances
- Go to Accounts Receivable> All tab > Payments and click Add (+) next to Advances.
- Select the Payment Methodby which the customer paid you.
- Choose the Customer IDof the customer from whom you received the advance.
- Enter the Receipt Dateand Payment Date.
- The Receipt Dateis the date on which you received the check, cash, credit card, or bank transfer.
- The Payment Dateis the transaction date.
- For check payments, it’s recommended that you record the check number.
- If you’re a multi-currency company receiving an advance in a different currency than your base currency, select the Transaction currency, and enter other currency conversion details as appropriate, such as the exchange rate date, type, or rate itself:
- Type or select a date in the Exchange rate date.
- In the Exchange rate type, click the drop-down to select an exchange rate type such as Intacct Daily Rate, or WSJ Published Rate. If your company uses custom exchange rate types, you can see them listed here.
- If you know the exchange rate for this advance, you can enter it in the Exchange rate to override system calculations.
- Optionally, add a Payment memo for future reference.
- Select or add an Attachment to store a digital version of a supporting document
- Click the GL Offset Account or Account Label drop-down list to select a different account or account label.
- In the Amount field, enter the amount of the advance payment for this line item.
- Optionally, in the Memo field, enter text to help you identify this line item.
- Optionally, select a Department and Location.
- Optionally, you can select a Dimension for each line item.
Advances are applied just like any other credit in AR or AP. For a review of this process please read our article on Credits in Sage Intacct.