Advance Payments
Advance Payments records money received or paid before a bill exists, keeps it as an advance, and adjusts it against the bill later.
Why and when you use it
Customers often pay a booking amount before goods are ready, and you may pay a supplier in advance to confirm an order. If you record that as a normal payment, there is no bill to match it to. Advance Payments keeps the money aside as an advance until the bill exists, then you adjust it. The cashier records it; the accountant adjusts and reviews pending advances.
Before you start
- Customer or supplier added
- An order number if the advance is against an order
Step by step
- Open Advance PaymentsOpen 🏢 Stockivio ERP and choose Advance Payments. The list shows Date, Order #, Customer, Amount, Mode and Reference.
- Record the advancePress Record Advance. Choose the party, enter amount, mode, reference and the order it relates to, then save.
- Watch pending advancesUse the Pending filter to see advances not yet used.
- Raise the billWhen goods are ready, raise the invoice in Sales Invoices (or record the bill in Purchases for a supplier advance).
- Adjust the advanceBack in Advance Payments, open the advance and press Adjust, choosing the bill it settles.
- Check statusAdjusted advances appear under the Adjusted filter. If you returned the money, it appears under Refunded.
Worked example
Patel Engineering Works receives an order on 3 Nov 2026 for a ₹1,80,000 gear assembly. The customer pays ₹50,000 advance by bank transfer, reference UTR 4482019.
- Press Record Advance; Customer: the buyer; Amount ₹50,000; Mode bank transfer; Reference UTR 4482019; Order # of the order.
- The advance shows under Pending.
- On 20 Nov 2026 the goods are invoiced for ₹1,80,000.
- Open the advance, press Adjust and choose that invoice.
Result: The invoice shows ₹50,000 paid and ₹1,30,000 balance. The advance moves to Adjusted.
💡 Tips
- Always fill Reference; it helps both the customer and bank reconciliation.
- Review the Pending list monthly; old advances may need a refund or a call.
- GST on advances depends on whether you sell goods or services; check with your CA.
⚠️ Common mistakes
- Recording an advance in Payments as a receipt with no bill. Use Record Advance instead.
- Forgetting to press Adjust after invoicing, so the invoice shows fully unpaid.
सवाल
Can I return an advance?
Yes. Record the refund and the advance will show as Refunded.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Advance Payments.
- Scene 2: Record Advance for ₹50,000 with reference.
- Scene 3: Show the Pending filter.
- Scene 4: Raise the invoice for ₹1,80,000.
- Scene 5: Press Adjust and choose the invoice.
- Scene 6: Show Adjusted and the invoice balance.