While configuring the Token advances from real estate customers when we try to setup the Account as Advances fom Customers and Account type Payable as it is still a liability until a complete down payment is received and eventually be converted to Sale, the system does not support this option of Liability to Customers, what should be done?
You are right in that according to IFRS it is a liability. However in the meantime you can use the Receivables account as thats the ERPNext accounting flow
At the end of the year you can reclassify all negative balances in the receivables accounts as liabilities for the sake of auditors/taxes/statutory reports
Go to company settings, in accounts tab. There is actually settings to set as you describe. You must make an account with root type as Liability, but account type as Receivable for the Advanced Received Account. And the same logic applies for Advanced Paid.
