Detatils background VP consulting

Issuance of advance invoice and issuance of final payment invoice with deduction of advance


An advance payment is a payment made before the transaction is completed (i.e. before the goods are delivered or the service is performed).

Usually, the advance payment is made on the basis of a contract, annex or proforma invoice. The existence of a contract does not preclude the issuance of a pro forma invoice.

The advance payment may be for a partial amount of the total amount of the transaction, but it might as well be for 100% of the total amount of the transaction. In practice 100% a payment received before the transaction has taken place is also essentially an advance payment.


The reason can be for example: "50% advance on contract"

IMPORTANT! In case, that the customer has made payment on a sent proforma invoice, the original invoice must be issued in 5 day period from receiving the money to the bank account.


  • Issuance of a final invoice deducting an advance payment up to 99.99 %

If a deal, on which an advance payment has been made, subsequently realized, a final invoice is issued. In this invoice, the total value and subject of the transaction is described, and the advance received is deducted on a separate line. Окончателната фактура с приспадане на аванс трябва да изглежда по следния начин:


  • first row – the subject of the transaction is described with the entire contract value
  • second row – the reason from the advance invoice is described, invoice number and date, to which the advance applies; the unit value is the value of the advance with a negative value.

It is possible for the contract to have several advances before finalizing the deal, they can be described in thirds, fourth or fifth row.

In this way, we show the value of the contract transaction, the value of the already received (received) advance and it is clear to the customer what the remaining amount is due as final payment.

  • Issuance of final invoice with deduction of 100% advance

If the advance payment was 100%, for which an invoice has been issued. Издаваме окончателна фактура с първи ред цялата стойност по договора и втори ред стойността на аванса. We don't have to worry in case, that the final value (payment amount) is on the invoice 0.

By issuing the invoice in this way we show documentary (except through the transmission protocol) the completion of the transaction.

The final invoice with deduction of 100% advance should look like this:


PPZDSDS allows not to issue a final invoice, but in our opinion a better option is to issue a final invoice with a final payment amount 0.

If the transaction does not take place and the advance payment is returned, the supplier must issue a Credit Notice.

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