An A/R reserve invoice is used in circumstances where:

1. You need to send your customer the invoice for prior payment before goods are delivered
2. You need to recognize revenue before you deliver the goods

• You can post an A/R reserve invoice either from a preceding  document e.g.  sales order/sales quotation or post it as an independent document. The journal entry for the A/R reserve invoice is:Dr. Customer a/c        Cr. Customer a/c

• After posting the A/R reserve invoice, you can post the payment  for the invoice. The journal entry for the incoming payment is:
  Dr. Bank a/c      Cr. Customer a/c
• Once you finally deliver the goods to the customer, you can post the delivery document from the A/R reserve invoice. The journal entry for the delivery document is:
  Dr. Cogs a/c    Cr. Inventory a/c

I am Caroline Ininga Majute,  a SAP Business One Consultant based in Nairobi, Kenya. For more inquires about sap business one, contact me at: [email protected]