Vendor Advances
Make advance payments to vendors for easy reconciliation with RazorpayX Dashboard.
Advance payments, often referred to as upfront payments or prepayments, are financial transactions in which a party makes a payment in advance of receiving goods, services or fulfilling contractual obligations. These payments serve various purposes, such as securing reservations, ensuring commitment or providing working capital.
Advance payments play a crucial role in managing cash flow and risk mitigation for both parties involved. Pay and track advance payments to vendors and avoid double payments with RazorpayX Advance Payments.
To create an advance payment for a vendor:
- Log in to the .
- Navigate to Vendor Payments → Advances at the top of the screen.
- Click + Advance to make an advance payment to a vendor.
- Search and select from existing contacts or create .
- Select the fund account of the chosen vendor to which you want to make the payment.
- In the Advance Details section, enter the Advance Amount.
- You can choose to Attach an existing Purchase Order and enter the PO Number, and add + NOTES, as required.
- Click Next and review the details. You can Schedule Payout or click Next to pay instantly.
- Enter the OTP sent to your registered mobile number and email id. Click Pay.
The advance is created and recorded.
How it Works:
- When you for a vendor to whom you have already paid an advance, RazorpayX recognises it and asks you if that particular advance is relevant to the current invoice.
- If it is relevant, select the checkbox against the row and the payable amount reduces as the advance is subtracted from the invoice.
You can make the payment instantly, schedule it or save and close the invoice. The invoice status will appear as PARTIALLY PAID once you map it to the advance payment.
After the advance payment is mapped with the invoice, the status of the advance changes from PAID to USED.
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