Can any other users advise as to the best way to account for customer payments in advance when VAT cash accounting and using Xero?
It seems that you must use the 'prepayment' transaction. This accounts for the VAT but the net prepayment is posted to the balance sheet so there is no credit balance to appear on the customers account.
This makes them hard to keep a track of and a customers statement showing the credit balance cannot be sent from the system.
Am I missing an easier way to deal with this?