Pre-paid/Advance Payments adjustment in Milestone Invoices

XML and business rules
1

Dear ZATCA E-invoicing Tech Team & Ankit Tiwari,

I hope this message finds you well.

I am reaching out for your advice and guidance regarding a specific business scenario I have encountered.

Consider a project in the real estate sector with a payment structure based on milestones. For instance, 20% of the total fees is allocated for each milestone, and 10% of the total fee is collected as an advance. Since the service involves five different milestones, we need to issue separate invoices for each one.

Is there a way to proportionately adjust the advance payment (i.e., 1/5 of the advance) across each milestone invoice? Alternatively, what would be the best method to distribute the advance amount while ensuring compliance with ZATCA’s e-invoicing regulations?

I appreciate your insights on the most compliant approach for handling advance payment adjustments in such cases.

Looking forward to your response.

Best Regards,
Asmit

2

@asmit yes you can proportionately distribute advance payment adjustment from multiple invoices. Just limit the amount of prepayment adjustment to (1/5th in your example) in cbc:prepaidamount and details of advance payment invoice (IRN, issue date & time, taxable amount and tax amount) can be repeated in all 5 subsequent invoices.

3

Thank you for your prompt response. I really apricate.