Advance payment invoice

Advance payment invoice

Advance Payment , We gives to the supplier before using its services or using its product. This payment we gives to supplier as a Advance. But how we can track this advance given to the supplier in System. for this , In System , We create an Prepayment Invoice for the amount of Advance Given to the supplier. This prepayment invoice shows that , how much amount of advance we have given to the supplier and that we called Advance Payment Invoice. In other form , we called advance payment invoice a Prepayment Invoice.

 

When we create the Prepayment Invoice , then we also need to adjust this invoice , when we got the final invoice of the supplier against using its service or using its products. This procedure is called prepayment applied against the standard invoice in oracle apps. We adjust the advance payment invoice again the final supplier invoice and then do the payment of the rest of the amount left after applying prepayment.

 

 

 

 

 

Advance Payment Invoice is the Prepayment Invoice , which we create to capture the Advance given to the supplier.