Proration/Amortization of Advance received across Several Progress Invoices

XML and business rules
1

Proration/Amortization of Advance received across Several Progress Invoices

Dear ZATCA team,

Please help us with a technical query on advance payment.

Can an advance of 50,000 + VAT (doc 386) received against a contract value of SAR 100,000 + VAT be adjusted over next 10 equal progress invoices (doc 388 - standard invoice) of 10000 + VAT each.

Example

Advance 386 = SAR 50000 + VAT

Progress Invoice 1 388 = SAR 10000-5000 + VAT
Progress Invoice 2 388 = SAR 10000-5000 + VAT
Progress Invoice 3 388 = SAR 10000-5000 + VAT
Progress Invoice 4 388 = SAR 10000-5000 + VAT
Progress Invoice 5 388 = SAR 10000-5000 + VAT

and so forth

or it will be

Advance 386 = SAR 50000 + VAT

Progress Invoice 1 388 = SAR 10000-10000 + VAT
Progress Invoice 2 388 = SAR 10000-10000 + VAT
Progress Invoice 3 388 = SAR 10000-10000 + VAT
Progress Invoice 4 388 = SAR 10000-10000 + VAT
Progress Invoice 5 388 = SAR 10000-10000 + VAT
Progress Invoice 6 388 = SAR 10000+ VAT
Progress Invoice 7 388 = SAR 10000+ VAT
Progress Invoice 8 388 = SAR 10000+ VAT
Progress Invoice 9 388 = SAR 10000+ VAT
Progress Invoice 10 388 = SAR 10000+ VAT

Please advice…

regards,

2

@chanya amount to be adjusted is a business decision. There is no limitation or specific requirements from VAT Regulations’ side on how much of advance payment can be adjusted from subsequent invoices. only check will be to ensure sum total of all adjustments do not exceed original value of advance payment invoice (SAR 50,000 in this example).