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Advance payment entry -pls clarify.....

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malarvannan

accounts executive

48 Points Posted on 08 November 2011

Dear Friends

For example. If i give advance payment to supplier(s1) for particular job.

As per my knowledge i update the payment entry in tally -5 lacs. But it will not reflected in accounts receivable in tally

Please clarify...Very urgent...

---yours

malar.D

Replies (2)

Bhaskar Unnikrishnan CPA CMA

Accounts / Administration

303 Points Posted on 08 November 2011

I am not much into tally, but wonder what is the logic of Advance payment to appear as Account Receivable. It is a current expense, but prepaid expenses or WIP in case of construction contracts!!!

Giridhar S Karandikar

Team Lead

5675 Points Posted on 08 November 2011

Why do you wnat to credit Account Receivable? as It is an payment made to your supplier Account Payable should be debited. Else if it an advance, it will get reflected on your assets side of the BS under Loans & Advances section

Giridhar