Advance payment entry -pls clarify.....

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!!!

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