Request you to please confirm which “Invoice Type Code” should be used in the XML when the company receives a 100% advance payment from customers? If invoice type code 386 is applicable in this scenario, is it acceptable not to issue a subsequent invoice with invoice type code 388? No additional invoice will be generated upon delivery of goods or services, as the invoice has already been issued at the time of receiving the full advance payment.
Request your assistance in clarifying the same.
@juhisomaya for 100% prepaid invoices you may choose not to issue a subsequent 388 invoice if your internal processes such as posting revenue entries, inventory management, delivery notes and payment management processes etc do not warrant issuance of 388 invoice. In this scenario you can select the invoice type code as 388 with supply dates in future.
There is no official guidance from ZATCA regarding this and you must take the position evaluating all interconnected processes. In any case, both options do achieve the end result of issuing Tax Invoice to customer.