--- title: "How to handle advance payments in the ERP?" slug: "1602862748" updated: 2026-08-14T15:48:32Z published: 2026-08-14T15:48:32Z canonical: "help.ila.cegid.com/1602862748" --- > ## Documentation Index > Fetch the complete documentation index at: https://help.ila.cegid.com/llms.txt > Use this file to discover all available pages before exploring further. # How to handle advance payments in the ERP? - [x] PT - [x] ES - [x] AO - [x] CV - [x] MZ - [x] ST - [x] GW - [x] Professional - [x] Executive - [x] Public Sector - [ ] Omnia - [ ] Evolution --- In the ERP, cash advances are a very useful function when managing an organization, and it should **ensure that all criteria and requirements are complied with** in its use. From this feature, you can include cash advances in the sales and purchases documents and deduct cash advances in Current Account. --- ## Remarks on VAT Legally, when performing cash advances, the VAT is required when the company receives the corresponding value. When including the cash advances in a document, the app will calculate the VAT value on the total deducted value, considering that the VAT regarding the cash advance has been previously settled. **Example:** Let's consider that a specific customer has performed an order of 600€ (VAT included at 20%) and, in that moment, ha has made a cash advance of 150€. - Cash Advance Value= 150€ (IVA = 25€) When the customer retrieved the order, the invoice presented the following values: - Goods: 500€ - VAT: 75€ - Others: -125€ - **Total**: 450€ > [!WARNING] > These values match the case of a series without included VAT. In the case of a series with included VAT, the cash advance value would be 150€ (part "Others"), and the Total is the same in both situations. --- ## Handling advance payments When handling advance payments, the following criteria must be followed: - The advanced payments must be **handled with VAT**; - The advanced payments are **registered with an invoice**; - The VAT clearing must be done with a **credit note** (as stipulated by order 8632/2014) and this clearing can only be done **after issuing the final invoice**; - **Not cleared advance payments must be visible** at any moment; - **SAF-T** must be correctly filled in; - The **account statement** (for current accounts) must provide evidence of all client records; - Accounting and the correct account must be **consistent** at all times; To perform the regularization of advance payments, you must: 1. Go to **[Marketing & Sales] | Sales | Documents**; 2. Create a new document, indicating an entity for which an advance payment invoice has already been issued: - An advance payment invoice is considered a document with **payable** nature, **linked to the current account** under an **account type** configured as an **advance payment**, and ideally with **no link to inventory**; 3. Go to **Context | Advance Payments Regularization**; - The upper grid will show all the advance payment documents available for use; - The lower grid shows the detail (lines) of the advance payment document selected in the upper grid; 4. Indicate which credit document to use to regularize the advance payment. This document must be a **financial** document, with **payable** nature, with **no link to current accounts**, and ideally with **no link to inventory**, and with the **Control qty. fulfilled at source** option enabled; 5. Indicate the issue **reason** for the credit note; 6. Select the **advance payment document** you want to regularize, or the lines and the corresponding amount to regularize, if you only want to regularize part of the advance payment document; 7. Click **Confirm**. 8. Complete the creation of the final invoice and click **Save**; 9. When the invoice is saved, the advance payment amount will be regularized on the invoice itself, that is, a document for the automatic settlement of the advance payment will be generated. You must configure the advance payment's adjustment document in the Administrator: 1. Go to **Administrator | Company | Payables and Receivables | Company Parameters**; 2. Go to the **Other** tab; 3. Specify the Adjustment Document. **Considerations:** - **You cannot use the same advance payment documen**t for both the regularization of advance payments and the advance payment deduction process. Each advance payment can only follow one of these two flows/processes. - The final invoice amount must always be **equal to or greater than** the advance payment amount being regularized. - Only advance payments that have the **same currency as the final invoice** can be regularized; - The **Final invoice** documents, as well as the generated **Credit Note**, **cannot be changed or canceled**; - The full relationship between the documents is ensured, both in terms of **traceability** and in the completion of the **SAF-T file**. --- ## Deduct cash advances for entities To deduct a cash advance in current account for a specific entity (Customer or Supplier, whether Sales or Purchases), follow these steps: 1. Access **[Marketing & Sales / Purchases] | [Sales / Purchases] | Documents**; 2. Select the document type **Invoice**; 3. Specify the entity: If it contains advance payments in current account, a message will be presented with this warning; 4. Access the **Advance Payments in Current Account** context operation; 5. On the presented window, it is possible to view on the column "Open Item" the open items in Cash Management for that advance payment. In turn, the column "Value**"** allows to insert the cash advance amount (that can be total or partial); 6. Click **Confirm**; 7. Check if a new row is presented on the sales editor with the amount inserted on the "Value" column; 8. Finally, click **Save**. > [!WARNING] > If the total open item value in sales is negative, you cannot perform a cash advance in current account. This operation is not possible because despite the document nature being payment, the total document is negative, and it has the properties of a receivable document and not of a payable document. --- ## Deduct advance payments in current account To deduct an advance payment in current account for a specific entity, follow these steps: 1. Access **Marketing & Sales | Sales | Documents**; 2. Access the **Advance Payments in Current Account** context operation; 3. Select the advance payments to be included on the document; 4. Click **Confirm**. --- ## Perform advance payments in current account To perform an advance payment in current account, follow these steps: 1. Access **[Marketing & Sales / Purchases / Finance] | Payables and Receivables | Documents**; 2. Select the customer; 3. Select the document of the advance payment type; 4. Specify the advance payment value; 5. Click **Save**. > [!NOTE] > If you wish to perform an advance payment in account with no link to current accounts, you must use the context option **Advance Payments**.