Advance payments

Advance payment requests are amounts requested of the business partner before or after the project starts. You can use these amounts to buy, for example, project material.

Advance payments can be made for all the invoice types. The advance must be linked to one of the contract lines. You can link an advance to an element or activity. If the invoice type of a contract line is Installment, you can also link the advance to the installment. You can use this installment to settle the advance. If the advance is not linked to an installment, you can settle the advance in the next invoice or define a liquidation percentage for the CLIN.

Advance payments requests and advance invoices are the two types of advance payments. An advance payment request represents a request to the business partner to pay a certain amount or percentage in advance. An advance invoice represents a normal invoice that must comply with all legal requirements and is included in the sales listing, VAT declaration, and revenue recogni-tion. An advance invoice is a legal document and therefore an official number is generated. The same is also included in the sales listing. Tax is applicable only for an advance invoice. You can specify advance payment request or advance invoice or both in the Contract Parameters (tpctm0100m000) session.

Advances can be settled, that is liquidated, by defining:

A first invoice (the remaining amount, if any, can be settled with next invoice and so on)
A specific installment (indicated on advance)
An advance or installment mapping (each installment settles a certain percentage or amount of the advance payment) in the Advance - Installment Settlement Mapping (tppin4112m000) session.
Liquidation percentage (as defined on contract line)
Settlement amount (as defined on deliverable)

To maintain an advance, you must select a revenue code from the Standard Revenues (tppdm0515m000) session. The advance payments are transferred to Invoicing by the application.

Posting advance payments:

When you post an advance payment request record, the application creates a revenue record.
When the advance line is printed and posted to Financials using the Compose/Print/Post Invoices (cisli2200m000) session, the invoice number is populated in the advance record and in the revenue record.
The revenue record is transferred from Invoicing to Invoicing. The application then creates a record in the Revenue Transactions (tpppc3505m000) session.
This record is printed using the Compose/Print/Post Invoices (cisli2200m000) session, and posted to Financials.

Note: You can settle the advance line with a normal line. If an advance line exists, the application adds the record to the Revenue to counterpost the advance.