How to do a Customer Advance

Making an advance payment to a customer, tracking it in Scrap Dragon and receiving the scrap metal will require 3 tickets.

SETUP

  1. Set up a commodity in the Commodity Master file for ‘Customer Advance’, ‘Vendor Advance’ or ‘Advance’
  2. Set the scale price at $1, $10, or $100 Each. This can be changed when you create the ticket, if necessary.
  3. Using the Button Maker, add the commodity to the button menu where the advance will be created.

TRANSACTIONS
At the time of the advance you MUST make 2 tickets, in either order.

First Ticket (to pay the customer the advance)

  1. Make a ticket to the customer for the amount of the advance.
  2. Use the ‘Advance’ button and enter a quantity that will give the desired total amount based on the scale price. Override the price if necessary.
  3. Pay the ticket to the customer.

Second Ticket (to track the receivable from the customer)

  1. Immediately, make a ticket to the customer for minus the amount of the advance.
  2. Use the ‘Advance’ button and enter a negative quantity that will give the total amount that was advanced to the customer based on the scale price. Override the price if necessary.
  3. Close the ‘negative’ ticket but do not pay it at this time. This will leave a negative balance on the customer’s Accounts Payable to reflect the fact that they owe either this amount of money or an equivalent value of scrap.

When the customer brings in the scrap, make a third (new) ticket that will be settled up with the unpaid negative second ticket.

Third Ticket (to receive the scrap from the customer)

  1. Make a regular scale ticket for the customer, using the correct grade, weight and price of the scrap material being purchased.
  2. Close the ticket in scrap buying.
  3. Pay the second and third tickets together using ‘Pay tickets By Customer’.

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