What is advance payment in SAP SBO - SAP Business One?

SAP Term: advance payment

• Component: SBO

• Component Name: SAP Business One

• Description: An amount paid by a customer for goods or services which have not yet been delivered or provided.

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• Key Concepts: 
  Advance payment is a feature in SAP Business One (SBO) that allows customers to make payments before goods or services are delivered. This feature is useful for businesses that need to receive payments in advance, such as those that offer subscription services or require deposits for large orders. It also helps businesses manage their cash flow more effectively. 
  
  How to Use it: 
  To use the advance payment feature in SBO, customers must first be set up as advance payment customers. This can be done by creating a customer master record and selecting the “Advance Payment” checkbox. Once this is done, customers can make advance payments by entering an invoice with the “Advance Payment” checkbox selected. The payment will then be recorded in the system and can be tracked in the customer’s account. 
  
  Tips & Tricks: 
  When setting up an advance payment customer, it is important to ensure that the customer’s credit limit is set correctly. This will help ensure that customers do not exceed their credit limit when making advance payments. Additionally, it is important to keep track of any advance payments made by customers so that they can be reconciled when goods or services are delivered. 
  
  Related Information: 
  For more information on how to use the advance payment feature in SBO, please refer to the SAP Business One User Guide. Additionally, there are several online resources available that provide helpful tips and tricks for using this feature.