Clarification on Inventory Handling for Advance Payment Invoice Scenario

We are writing to seek official clarification regarding the correct treatment of inventory, tax invoice classification, and credit note issuance in scenarios involving advance payments and split billing. The objective is to ensure that our accounting and inventory systems remain fully compliant with ZATCA regulations.

Scenario Overview: Product: MacBook

Unit Price: 8,000 SAR

Main Warehouse Stock: 100 units

Transactions: On 2025-01-01, an advance payment invoice (#0000000002) is issued for 4,000 SAR, representing partial payment for one MacBook.

On 2025-02-01, a final invoice (#0000000003) is issued for the remaining 4,000 SAR, referencing the advance invoice (#0000000002).

Questions for Clarification:

Inventory Deduction Timing: At what point should the inventory be deducted in compliance with ZATCA regulations?

Option A: When the advance payment invoice is issued?

Option B: Only when the final invoice is issued and the product is physically delivered to the customer?

Invoice Classification: Is the following invoice treatment correct according to ZATCA guidelines?

Invoice #0000000002 → Advance Payment Invoice

Invoice #0000000003 → Final Tax Invoice (completing the transaction and referencing the advance)

Stock Traceability and Sales Recognition: What is the proper ZATCA-compliant approach to:

Record the inventory movement (deduction of 1 MacBook)

Recognize revenue in our accounting system

Ensure traceability of the sale in the event of split payments and delivery timing?

Refund of Advance Payment: If the customer later requests a refund for the advance payment before the product is delivered:

What is the correct method to issue a credit note for the advance payment?

What is the proper document type/code that should be used in this case within the e-invoicing platform (Fatoora)?

How should we reflect this transaction in both the accounting and inventory systems?

Good question, I hope we get an answer about such scenarios

Thanks