Posts Tagged ‘Project Advance in ax 2012’

Project Customer Advance Transaction cycle

1. Raise the invoice against the customer for the advance payment in the project

Select the project and click Manage > Bill > Customer advance on the action pane.

01

  • Click New.
  • Enter category and activity if you have/want any. I will just go with requesting the advance for the project as a whole.
  • Enter Description = Advance towards project #Name#.
  • In this scenario, I will just proceed by specifying a flat amount, say 1,000.00.
  • Verify that Total customer advance invoice amount =1,000.
  • Click OK button.

02

  • Once you click OK Invoice proposals form will open (here we have the optional workflow) and post the invoice proposal.

03

  • Click Manage > Bill > On Account Transactions and verify that the on account record is created.

04

Following will be the accounting entry:

Customer a/c                                                     Dr.          1000

Project WIP-Invoice on account                            Cr.          1000

2. Advance received from the customer

From the Account receivables module, create the payment journal, then go to payment tab and select the “Prepayment journal voucher”. Once you check mark the “prepayment journal voucher”, you can see the posting profile will automatically get change to the Advance posting profile. Then validate and post the journal.

05

Following will be the financial voucher entry:

Bank                                                                           Dr.          1000

Payment Received in Advance Ledger Account                    Cr.          1000

Note: Use the customer advance posting profile.

3.  Raise the invoice against the work done (e.g. 10000) in the project or based on the milestone and include the advance deduction of e.g. 500

06

Following will be the accounting entry after posting the Invoice Proposal:

Customer a/c                                                         Dr.          9500

Project WIP Invoice on Account                                Cr.          9500

Trail balance after receiving the advance and deduction on the first invoicing

Main account set Name Opening balance Debit Credit Net difference Closing balance
1112026 Bank 0.00 1,000.00 0.00 1,000.00 1,000.00
1131011 Accounts Receivable – Local 0.00 10,500.00 0.00 10,500.00 10,500.00
1603100 Project WIP – Invoiced – On Account 0.00 0.00 10,500.00 -10,500.00 -10,500.00
2114041 Payments Received in Advanced 0.00 0.00 1,000.00 -1,000.00 -1,000.00
Total   0.00 11,500.00 11,500.00 0.00 0.00

4.   After deduction of the advance in the invoice, do the manual settlement for the advance deducted. Once the Invoice is posted which contains the advance deduction, go to customer master select the customer go to Collection Settle –> open transaction, select the advance payment invoice and the project invoice in which you deduct the advance and settle the amount (500) that much you settle in the invoice of the project.

Trail balance after settling the advance

Main account set Name Opening balance Debit Credit Net difference Closing balance
1112026 Bank 0.00 1,000.00 0.00 1,000.00 1,000.00
1131011 Accounts Receivable – Local 0.00 10,500.00 500.00 10,000.00 10,000.00
1603100 Project WIP – Invoiced – On Account 0.00 0.00 10,500.00 -10,500.00 -10,500.00
2114041 Payments Received in Advanced 0.00 500.00 1,000.00 -500.00 -500.00
Total   0.00 12,000.00 12,000.00 0.00 0.00

This is the full cycle from advance payment receiving to the settlement.

Please comment, your valuable input is required.