Record payments on account when you receive or make a payment without an invoice. Use the payment on account later to pay off an invoice. See Allocate credit notes and payments on account for more information.

If you or a customer overpay an invoice, record the payment normally and the extra amount as a payment on account.

If you have set up check printing, print checks from the Cheque Register. For more information about printing checks, see the following topics:

• Set up check printing
• Print and manage checks

To record a customer payment on account

1. Go to Banking.
2. From New, click Sale/Receipt.  NOTE: You can also create a new receipt directly on the Banking page. If you enter the receipt here, select the correct bank account. 
3. Click Customer Receipt and complete the following information:

   Customer *	Choose the customer who has made the payment.
   Paid into Bank Account *	Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
   Method *	Specify the payment method.
   Date Received *	Enter the date you receive the payment.
   Your Reference (Optional)	Enter a reference for this receipt.
   Amount Received *	Enter the total amount of the payment on account.

   * Indicates a required field.

4. If your customer paid an invoice with part of this payment on account, select the relevant invoice.
5. Click Save. To add another payment, open the Save drop-down menu and click Add Another. Repeat as above.

To record a vendor payment on account

1. Go to Banking.
2. Click the required bank account.
3. Open the New Entry menu and click Expense/Payment.

    NOTE: You can also create a new payment from the Banking page. Enter the payment here and select the correct bank account. 

4. Click Vendor Payment and complete the following information:

   Vendor *	Enter either the company name or reference. As you type, the list of vendors appears, choose the vendor you've paid.
   Paid from Bank Account *	Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
   Method *	Specify the payment method.  NOTE: Select Cheque and a vendor for the transaction to appear in the Cheque Register. You can print the check from the Cheque Register.
   Date Paid *	Enter the date you made the payment.
   Your Reference (Optional)	Enter a reference for the payment.
   Amount Paid *	Enter the total amount of the payment on account.

   * Indicates a required field.

5. If you're paying an invoice with part of this payment on account, select the relevant invoice.
6. Click Save. To add another payment, open the Save drop-down menu and click Add Another. Repeat as above.

Track petty cash

Bank account types in Sage Accounting