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We adopted the the advanced invoice process for our CIA customers.

However >50% of the time,  the original order is modified:

Quantity changes

Freight Changes or add freight cost

Pricing changes

 

It seems the only way to deal with this is to credit the advanced incoices, net them, and create a new advanced invoice.  SO...we wait as long as possible to create the advanced invoice (after we finalize the amt),  but we often get payments before the advanced invoice is created and pt them on account.  Either it is a lot of work.  Are there any creative ways to revise advanced invoices ?  Or other ideas on how to deal with this ?

Hi,

you can also send multiple advance invoices covering the changed amount. A advance invoice must not cover a 100% order value. 

If the amount of the initial advance invoice (in case the order value decreased ) is higher than the payment received you can write off the remaining open amount of the advance invoice using a write off code posted against the account of the “revenue” of the advance invoice.

When putting the invoices just on account (CUPOA) they are not mentioned on the final invoice and no tax is posted (if the order is taxable and payments in advance are obliged to tax in your region).

It depends of course on the business case and what you would like to achieve with the advance payment. If you always want to have a 100% order value upfront this might be difficult as you explained if it comes to order changes. Else you might be good enough with the initial order value.

Regards

Ralph

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