In our erp system we have sales invoice section and depending on wether the TRN field is filled or not in customer details we issue simplified or standard tax invoice, but what we didn’t understand is advanced payments, are they treated as a separate invoice type / section and issue an advance payment invoice or should we add it as a receipt type select for example: (advance payment or invoices receipt). Let me reword it: what type of commercial document is it? Can someone explain what is the correct business workflow for a advanced payments so we are able to implement it correctly. Any help regarding this is appreciated

first: When you receive money in advance from a customer ( service or goods will be provided in future) … so you will issue a document type 386 …invoice prepayment … with 1 line in details includes description like … advance payment for so an so … second: when you provide the service or Good … (parthaly or fully) you will issue an Invoice type 388 by the value of the service or good. in the the XML of this invoice … you will include somthing called “Avdance Adjustements” with part or full amount of invoce type 386. for more information about prepayments: E-invoicing-Detailed-Technical-Guideline.pdf 3.80 MB for more information about XML prepayments adjustments: 20230519_ZATCA_Electronic_Invoice_XML_Implementation_Standard_%20vTrack.pdf 1086.41 KB

Hi When an invoice is issued for an advance payment, what is the VAT to be calculated? The advance has not yet been assigned to any item. The item that it will be assigned to - in the future - may or may not be subject to VAT

If It is not subject to VAT in future, you can issue a credit note against this prepyament and issue a new invoice according to vat postion and ignore prepayement in this case

Advance Payments

General

Malik August 8, 2024, 7:42am 2

386 Prepayment/Advance invoice

adjustment of prepayment will be a separate line with prepayment details in the invoice 388.

Topic		Replies	Views
Advance Payment xml and pdf Sample General	9	321	December 8, 2025
Advance Payment Invoice, amounts and calculations General	1	204	October 21, 2025
Query about Advance Payments and XML Structure for ZATCA General	2	137	December 16, 2024
How to create prepayment invoice for partial payment? General	1	351	October 24, 2024
Query about Advance Payments and XML Structure for ZATCA General	8	572	January 30, 2025

Advance Payments

Related topics