Exact Globe

Batch 350: Advance Invoice

Background:

An"Advance Invoice" is a document containing the payment information regarding item’s description, prices, quantities of goods, etcetera based on the advance amount agreed between customer and supplier. It is different from an ordinary invoice because there will be no VAT liable for the Advance invoice. All item prices and amounts recorded in the document are excluding VAT. However, it is a practice for certain countries to send a substantiating tax document along with the advance invoice to customer for the related tax information. The functionality is available only for the Czech Republic and Hungary.

1. Firstly, user will have to create a sales order before they can generate advance invoice via the conditions screen. 
   
   
   
   
2. The button "Advance invoice" will be enabled only after the approval of the sales order.
   
   
   
   
3. By pressing the "Advance invoice"-button, a user can select the amount to be paid for the advance invoice.
   
   
   
   
   The Sales Order term will be split based on this paid amount and a sequential advance invoice number will be assigned to this advance invoice term. The advance invoice number can be defined by user via the advance invoice: Number field in Number settings.
   
   
   
   
   
4. The advance invoice document can be printed based on sales order confirmation layout. User has to customize the layout for advance invoice printing. Specially for this purpose, two database fields “Advance Invoice number” and “Advance Invoice amount” have been added to the layout definition.
   
   
   
   
   This document will be stored and linked to the invoice debtor.
   
   
   
   User is not allowed to edit the advance invoice term manually. The icon button “Edit” will be disabled when user select the Advance Invoice term.
   
   

5. As long as the advance invoice terms have not been matched, the sales order will be blocked for fulfillment and generate invoices.
   User can enter the payment for the advance invoice via cash flow entry or financial entry.

6. After the payment is entered, user can go back to the sales order to generate the TAX document for the Advance invoice.
   
   
   
   By selecting the "Match"-button from the condition screen, an invoice window will prompt with a list of unmatched payment receipts (from the invoice debtor). Select the correct cash/bank receipt to match to the advance invoice and choose for 'Generate'. Be aware that cross currency is not supported at the moment, which means that any payment entry made with currency will not be listed here.
   
   
   
   User is allowed to select a payment receipt that is equal, less than or greater than the advance invoice amount. The system will split the advance invoice terms whenever is required to match with the amount from the payment.

7. When user starts 'Generate', a window will be prompt to serve as an option for the user to print the delivery note or custom layout. User may skip this process as it is not mandatory process. After closing the "Print sales order window", a small "Create invoice"-window will be prompt. User can select the invoice code and resource to create the tax document based on the invoice amount. This will use the phantom item “Project_Term” and the VAT codes from the order.
   

8. The tax document can be printed with a user defined the invoice layout type.
   
   
   
   User can alternatively change the default description and General Ledger Account for the phantom item “Project_Term” via menu path [Orders/Items/Rules]. For instance, following image shows the printed tax document with a line of phantom item “Project_Term”. The description has been changed from “Term(Project)” to “Advance Invoice Term”.
   

After the matching process is done for the advance invoice, the sales order will be unblocked for fulfillment process. The final generated invoice will be printed with the remaining amount which is still outstanding. If the advance invoice involves multiple payments, user is required to repeat the steps to generate the tax document until all advance invoice terms from the order are completely processed.

In case a user deletes a sales order that already has an advance invoice document created before, the s ales order and all linked advance invoice document will be deleted as well.