How to record advance payments made by customer that can be applied for future invoices?

Problem Statement

You want to know how to record advance payments made by customer that can be applied for future invoices.

Solution

This can be achieved through Excess Payment. If you have collected payment from a customer in advance, or if the customer has made a single payment for multiple invoices, use the Record a Payment paid offline option to account for the same:

The recorded payment will be automatically applied to future invoices. It can also be manually applied to the existing Not Paid or Payment Due invoices.