diff --git a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeDialogs.tsx b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeDialogs.tsx
new file mode 100644
index 000000000..e03c01f52
--- /dev/null
+++ b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeDialogs.tsx
@@ -0,0 +1,9 @@
+import { ExcessPaymentDialog } from './dialogs/PaymentMadeExcessDialog';
+
+export function PaymentMadeDialogs() {
+  return (
+    <>
+      <ExcessPaymentDialog dialogName={'payment-made-excessed-payment'} />
+    </>
+  );
+}
diff --git a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeForm.tsx b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeForm.tsx
index 792dd095e..b563dbee9 100644
--- a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeForm.tsx
+++ b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/PaymentMadeForm.tsx
@@ -14,6 +14,7 @@ import PaymentMadeFloatingActions from './PaymentMadeFloatingActions';
 import PaymentMadeFooter from './PaymentMadeFooter';
 import PaymentMadeFormBody from './PaymentMadeFormBody';
 import PaymentMadeFormTopBar from './PaymentMadeFormTopBar';
+import { PaymentMadeDialogs } from './PaymentMadeDialogs';
 
 import { PaymentMadeInnerProvider } from './PaymentMadeInnerProvider';
 import { usePaymentMadeFormContext } from './PaymentMadeFormProvider';
@@ -21,6 +22,7 @@ import { compose, orderingLinesIndexes } from '@/utils';
 
 import withSettings from '@/containers/Settings/withSettings';
 import withCurrentOrganization from '@/containers/Organization/withCurrentOrganization';
+import withDialogActions from '@/containers/Dialog/withDialogActions';
 
 import {
   EditPaymentMadeFormSchema,
@@ -42,6 +44,9 @@ function PaymentMadeForm({
 
   // #withCurrentOrganization
   organization: { base_currency },
+
+  // #withDialogActions
+  openDialog,
 }) {
   const history = useHistory();
 
@@ -149,6 +154,7 @@ function PaymentMadeForm({
             <PaymentMadeFormBody />
             <PaymentMadeFooter />
             <PaymentMadeFloatingActions />
+            <PaymentMadeDialogs />
           </PaymentMadeInnerProvider>
         </Form>
       </Formik>
@@ -163,4 +169,5 @@ export default compose(
     preferredPaymentAccount: parseInt(billPaymentSettings?.withdrawalAccount),
   })),
   withCurrentOrganization(),
+  withDialogActions,
 )(PaymentMadeForm);
diff --git a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialog.tsx b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialog.tsx
new file mode 100644
index 000000000..c93c85a17
--- /dev/null
+++ b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialog.tsx
@@ -0,0 +1,37 @@
+// @ts-nocheck
+import React from 'react';
+import { Dialog, DialogSuspense } from '@/components';
+import withDialogRedux from '@/components/DialogReduxConnect';
+import { compose } from '@/utils';
+
+const ExcessPaymentDialogContent = React.lazy(() =>
+  import('./PaymentMadeExcessDialogContent').then((module) => ({
+    default: module.ExcessPaymentDialogContent,
+  })),
+);
+
+/**
+ * Exess payment dialog of the payment made form.
+ */
+function ExcessPaymentDialogRoot({ dialogName, isOpen }) {
+  return (
+    <Dialog
+      name={dialogName}
+      title={'Excess Payment'}
+      isOpen={isOpen}
+      canEscapeJeyClose={true}
+      autoFocus={true}
+      style={{ width: 500 }}
+    >
+      <DialogSuspense>
+        <ExcessPaymentDialogContent dialogName={dialogName} />
+      </DialogSuspense>
+    </Dialog>
+  );
+}
+
+export const ExcessPaymentDialog = compose(withDialogRedux())(
+  ExcessPaymentDialogRoot,
+);
+
+ExcessPaymentDialog.displayName = 'ExcessPaymentDialog';
diff --git a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialogContent.tsx b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialogContent.tsx
new file mode 100644
index 000000000..a498bd04a
--- /dev/null
+++ b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/PaymentMadeExcessDialogContent.tsx
@@ -0,0 +1,113 @@
+// @ts-nocheck
+import * as R from 'ramda';
+import * as Yup from 'yup';
+import { useMemo } from 'react';
+import { Button, Classes, Intent } from '@blueprintjs/core';
+import { Form, Formik, FormikHelpers, useFormikContext } from 'formik';
+import { AccountsSelect, FFormGroup } from '@/components';
+import { usePaymentMadeFormContext } from '../../PaymentMadeFormProvider';
+import withDialogActions from '@/containers/Dialog/withDialogActions';
+
+interface ExcessPaymentValues {
+  accountId: string;
+}
+
+const initialValues = {
+  accountId: '',
+} as ExcessPaymentValues;
+
+const Schema = Yup.object().shape({
+  accountId: Yup.number().required(),
+});
+
+const DEFAULT_ACCOUNT_SLUG = 'depreciation-expense';
+
+function ExcessPaymentDialogContentRoot({ dialogName, closeDialog }) {
+  const { setFieldValue } = useFormikContext();
+
+  const handleSubmit = (
+    values: ExcessPaymentValues,
+    { setSubmitting }: FormikHelpers<ExcessPaymentValues>,
+  ) => {
+    closeDialog(dialogName);
+    setFieldValue(values.accountId);
+  };
+
+  // Handle close button click.
+  const handleCloseBtn = () => {
+    closeDialog(dialogName);
+  };
+  const defaultAccountId = useDefaultExcessPaymentDeposit();
+
+  return (
+    <Formik
+      initialValues={{
+        ...initialValues,
+        accountId: defaultAccountId,
+      }}
+      validationSchema={Schema}
+      onSubmit={handleSubmit}
+    >
+      <Form>
+        <ExcessPaymentDialogContentForm onClose={handleCloseBtn} />
+      </Form>
+    </Formik>
+  );
+}
+
+export const ExcessPaymentDialogContent = R.compose(withDialogActions)(
+  ExcessPaymentDialogContentRoot,
+);
+
+interface ExcessPaymentDialogContentFormProps {
+  onClose?: () => void;
+}
+
+function ExcessPaymentDialogContentForm({
+  onClose,
+}: ExcessPaymentDialogContentFormProps) {
+  const { submitForm } = useFormikContext();
+  const { accounts } = usePaymentMadeFormContext();
+
+  const handleCloseBtn = () => {
+    onClose && onClose();
+  };
+  return (
+    <>
+      <div className={Classes.DIALOG_BODY}>
+        <p>
+          Would you like to record the excess amount of $1000 as advanced
+          payment from the customer.
+        </p>
+
+        <FFormGroup
+          name={'accountId'}
+          label={'The excessed amount will be deposited in the'}
+        >
+          <AccountsSelect
+            name={'accountId'}
+            items={accounts}
+            buttonProps={{ small: true }}
+          />
+        </FFormGroup>
+      </div>
+
+      <div className={Classes.DIALOG_FOOTER}>
+        <div className={Classes.DIALOG_FOOTER_ACTIONS}>
+          <Button intent={Intent.PRIMARY} onClick={() => submitForm()}>
+            Continue to Payment
+          </Button>
+          <Button onClick={handleCloseBtn}>Cancel</Button>
+        </div>
+      </div>
+    </>
+  );
+}
+
+const useDefaultExcessPaymentDeposit = () => {
+  const { accounts } = usePaymentMadeFormContext();
+  return useMemo(() => {
+    return accounts?.find((a) => a.slug === DEFAULT_ACCOUNT_SLUG)?.id;
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, []);
+};
diff --git a/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/index.ts b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/index.ts
new file mode 100644
index 000000000..dae9903b5
--- /dev/null
+++ b/packages/webapp/src/containers/Purchases/PaymentMades/PaymentForm/dialogs/PaymentMadeExcessDialog/index.ts
@@ -0,0 +1 @@
+export * from './PaymentMadeExcessDialog';
\ No newline at end of file
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveForm.tsx b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveForm.tsx
index 5d80d89f3..3b552e1fb 100644
--- a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveForm.tsx
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveForm.tsx
@@ -21,6 +21,7 @@ import { PaymentReceiveInnerProvider } from './PaymentReceiveInnerProvider';
 
 import withSettings from '@/containers/Settings/withSettings';
 import withCurrentOrganization from '@/containers/Organization/withCurrentOrganization';
+import withDialogActions from '@/containers/Dialog/withDialogActions';
 
 import {
   EditPaymentReceiveFormSchema,
@@ -51,6 +52,9 @@ function PaymentReceiveForm({
 
   // #withCurrentOrganization
   organization: { base_currency },
+
+  // #withDialogActions
+  openDialog
 }) {
   const history = useHistory();
 
@@ -102,6 +106,11 @@ function PaymentReceiveForm({
   ) => {
     setSubmitting(true);
 
+    if (true) {
+      openDialog('payment-received-excessed-payment');
+      return;
+    }
+
     // Transformes the form values to request body.
     const form = transformFormToRequest(values);
 
@@ -191,4 +200,5 @@ export default compose(
     preferredDepositAccount: paymentReceiveSettings?.preferredDepositAccount,
   })),
   withCurrentOrganization(),
+  withDialogActions
 )(PaymentReceiveForm);
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveFormDialogs.tsx b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveFormDialogs.tsx
index e60b27142..76ccb72a4 100644
--- a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveFormDialogs.tsx
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/PaymentReceiveFormDialogs.tsx
@@ -2,6 +2,7 @@
 import React from 'react';
 import { useFormikContext } from 'formik';
 import PaymentReceiveNumberDialog from '@/containers/Dialogs/PaymentReceiveNumberDialog';
+import { ExcessPaymentDialog } from './dialogs/ExcessPaymentDialog';
 
 /**
  * Payment receive form dialogs.
@@ -21,9 +22,12 @@ export default function PaymentReceiveFormDialogs() {
   };
 
   return (
-    <PaymentReceiveNumberDialog
-      dialogName={'payment-receive-number-form'}
-      onConfirm={handleUpdatePaymentNumber}
-    />
+    <>
+      <PaymentReceiveNumberDialog
+        dialogName={'payment-receive-number-form'}
+        onConfirm={handleUpdatePaymentNumber}
+      />
+      <ExcessPaymentDialog dialogName={'payment-received-excessed-payment'} />
+    </>
   );
 }
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialog.tsx b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialog.tsx
new file mode 100644
index 000000000..44e660e76
--- /dev/null
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialog.tsx
@@ -0,0 +1,37 @@
+// @ts-nocheck
+import React from 'react';
+import { Dialog, DialogSuspense } from '@/components';
+import withDialogRedux from '@/components/DialogReduxConnect';
+import { compose } from '@/utils';
+
+const ExcessPaymentDialogContent = React.lazy(() =>
+  import('./ExcessPaymentDialogContent').then((module) => ({
+    default: module.ExcessPaymentDialogContent,
+  })),
+);
+
+/**
+ * Excess payment dialog of the payment received form.
+ */
+function ExcessPaymentDialogRoot({ dialogName, isOpen }) {
+  return (
+    <Dialog
+      name={dialogName}
+      title={'Excess Payment'}
+      isOpen={isOpen}
+      canEscapeJeyClose={true}
+      autoFocus={true}
+      style={{ width: 500 }}
+    >
+      <DialogSuspense>
+        <ExcessPaymentDialogContent dialogName={dialogName} />
+      </DialogSuspense>
+    </Dialog>
+  );
+}
+
+export const ExcessPaymentDialog = compose(withDialogRedux())(
+  ExcessPaymentDialogRoot,
+);
+
+ExcessPaymentDialog.displayName = 'ExcessPaymentDialog';
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialogContent.tsx b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialogContent.tsx
new file mode 100644
index 000000000..21313cb59
--- /dev/null
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/ExcessPaymentDialogContent.tsx
@@ -0,0 +1,106 @@
+// @ts-nocheck
+import { useMemo } from 'react';
+import * as Yup from 'yup';
+import * as R from 'ramda';
+import { Button, Classes, Intent } from '@blueprintjs/core';
+import { Form, Formik, FormikHelpers, useFormikContext } from 'formik';
+import { AccountsSelect, FFormGroup } from '@/components';
+import { usePaymentReceiveFormContext } from '../../PaymentReceiveFormProvider';
+import withDialogActions from '@/containers/Dialog/withDialogActions';
+
+interface ExcessPaymentValues {
+  accountId: string;
+}
+
+const initialValues = {
+  accountId: '',
+} as ExcessPaymentValues;
+
+const Schema = Yup.object().shape({
+  accountId: Yup.number().required(),
+});
+
+const DEFAULT_ACCOUNT_SLUG = 'depreciation-expense';
+
+export function ExcessPaymentDialogContentRoot({ dialogName, closeDialog }) {
+  const { setFieldValue } = useFormikContext();
+  const initialAccountId = useDefaultExcessPaymentDeposit();
+
+  const handleSubmit = (
+    values: ExcessPaymentValues,
+    { setSubmitting }: FormikHelpers<ExcessPaymentValues>,
+  ) => {
+    closeDialog(dialogName);
+    setFieldValue('unearned_revenue_account_id', values.accountId);
+  };
+  const handleClose = () => {
+    closeDialog(dialogName);
+  };
+
+  return (
+    <Formik
+      initialValues={{
+        ...initialValues,
+        accountId: initialAccountId,
+      }}
+      validationSchema={Schema}
+      onSubmit={handleSubmit}
+    >
+      <Form>
+        <ExcessPaymentDialogContentForm onClose={handleClose} />
+      </Form>
+    </Formik>
+  );
+}
+
+export const ExcessPaymentDialogContent = R.compose(withDialogActions)(
+  ExcessPaymentDialogContentRoot,
+);
+
+function ExcessPaymentDialogContentForm({ onClose }) {
+  const { accounts } = usePaymentReceiveFormContext();
+  const { submitForm } = useFormikContext();
+
+  const handleCloseBtn = () => {
+    onClose && onClose();
+  };
+
+  return (
+    <>
+      <div className={Classes.DIALOG_BODY}>
+        <p>
+          Would you like to record the excess amount of $1000 as advanced
+          payment from the customer.
+        </p>
+
+        <FFormGroup
+          name={'accountId'}
+          label={'The excessed amount will be deposited in the'}
+        >
+          <AccountsSelect
+            name={'accountId'}
+            items={accounts}
+            buttonProps={{ small: true }}
+          />
+        </FFormGroup>
+      </div>
+
+      <div className={Classes.DIALOG_FOOTER}>
+        <div className={Classes.DIALOG_FOOTER_ACTIONS}>
+          <Button intent={Intent.PRIMARY} onClick={() => submitForm()}>
+            Continue to Payment
+          </Button>
+          <Button onClick={handleCloseBtn}>Cancel</Button>
+        </div>
+      </div>
+    </>
+  );
+}
+
+const useDefaultExcessPaymentDeposit = () => {
+  const { accounts } = usePaymentReceiveFormContext();
+  return useMemo(() => {
+    return accounts?.find((a) => a.slug === DEFAULT_ACCOUNT_SLUG)?.id;
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, []);
+};
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/index.ts b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/index.ts
new file mode 100644
index 000000000..9be100852
--- /dev/null
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/dialogs/ExcessPaymentDialog/index.ts
@@ -0,0 +1 @@
+export * from './ExcessPaymentDialog';
\ No newline at end of file
diff --git a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/utils.tsx b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/utils.tsx
index dfc9fcf1f..58326ca81 100644
--- a/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/utils.tsx
+++ b/packages/webapp/src/containers/Sales/PaymentReceives/PaymentReceiveForm/utils.tsx
@@ -47,7 +47,8 @@ export const defaultPaymentReceive = {
   branch_id: '',
   exchange_rate: 1,
   entries: [],
-  attachments: []
+  attachments: [],
+  unearned_revenue_account_id: '',
 };
 
 export const defaultRequestPaymentEntry = {