> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/order-processing/purchase-order/po-configuration/advance-paid-settings.md).
# Advance Paid Settings
**YouTube:** [How to Record Advance Payments from Within a Purchase Order?](https://youtu.be/Hyiiz2cTHcQ)
## How to Record Advance Payments from Within a Purchase Order?
In this tutorial, we will learn how to record an advance payment made to a supplier against a Purchase Order in Logic ERP. By configuring the Advance Paid settings, the software can automatically generate the corresponding Cash or Bank Payment Voucher whenever an advance amount is entered in a Purchase Order.
***
### Objective of This Feature
* Record supplier advance payments directly from Purchase Orders
* Automatically create Cash/Bank Payment Voucher entries
* Reduce manual voucher posting
* Improve payment tracking against Purchase Orders
* Ensure accurate accounting of advance payments
***
### Access to Advance Payment Settings
* Open **Purchase Order Configuration**
* Navigate to **Other Settings.**
* Locate the option labeled as:
> **Advance Paid Settings.**
* **Select:**
* Default Cash Payment Configuration or
* Default Bank Payment Configuration
**System Behavior**
* Whenever an Advance Payment is entered in a Purchase Order:
* The software automatically creates the corresponding Cash/Bank Payment Voucher entry using the selected configuration.
**Enable the Advance Paid Field**
* Go to **General Options**
* Click **Column Locks**
* Search for **Advance Paid**
* Tick the option to Unlock.
**Result**
* The Advance Paid option becomes visible during Purchase Order entry.
* Save the Configuration.
***
### Create a New Purchase Order
**Process**
* Initiate New Purchase Order Entry
* In the Header Section:
* Click **Other Details**
* Select **Advance Paid**
**Enter Advance Payment Details**
* A payment window appears.
* Select the payment mode:
* Cash
* Credit Card
* Cheque
* Credit Note
**Example**
* Select **Cash**
* Enter ₹10,000 as Advance Payment
**Meaning**
* This indicates that an advance payment of ₹10,000 has been paid to the supplier against the Purchase Order.
***
### Complete the Purchase Order
**Process**
* Move to Item Details Section
* Enter Required Items
* Complete Purchase Order Entry
* Click to **Save**
***
### Automatic Voucher Creation
**System Behavior**
* Upon saving the **Purchase Order:**
* The software automatically creates a Cash Payment or Bank Payment Voucher entry for the advance amount.
**Verify the Advance Payment Entry**
* Open Cash Payment Entry Window
* Or Bank Payment Entry Window, depending on configuration.
* Click **Modify**
**Result**
* In the Voucher Search List:
* You will find the automatically generated advance payment entry.
**Example**
* Advance Payment:
* ₹10,000
* Voucher Entry:
* Automatically posted against the Purchase Order created earlier.
***
### Key Benefits
* Eliminates manual voucher creation
* Improves advance payment tracking
* Ensures accounting accuracy
* Saves data entry time
* Creates seamless integration between Purchase Orders and Payments
***
### Best Practice Tips
* Always select the correct Cash/Bank Payment Configuration.
* Enable the Advance Paid field only when advance payments are commonly used.
* Verify automatically generated vouchers periodically.
* Reconcile supplier advances with Purchase Bills when goods are received.
***
### Final Outcome
* Advance payments can be recorded directly during Purchase Order entry.
* The system automatically generates the corresponding Cash or Bank Payment Voucher.
* Supplier advances are accurately tracked and linked with Purchase Orders in Logic ERP.
---
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