Advance records are generated and tracked over Purchase Contracts. "Generate Advanced Slip" option located on the right click menu of Purchase Contracts browser is used to create an Advance record.

The "Generate Advance Slip" option is available only in "Approved" contracts.

If AR/AP Slip is selected, AR/AP slip of Payment type opens. The default type of this slip is set in Purchase Defaults and Parameters > Default AR/AP Slip Type of Contract (Advance) parameter line.

If Bank Slip is selected, Bank slip of Collection type opens. The default type of this slip is set in Purchase Defaults and Parameters > Contract Default Bank Slip Type (Advance) parameter line.

See. System Settings > Purchase Management Defaults and Parameters

Organizational unit, department, AR/AP code, debit, transaction type, stoppage amount and the contract number information is transferred to AR/AP slip of Payment type automatically according to the contract.

Debit field shows the remaining advance amount calculated by subtracting the total advance amount from the contract advance amount.

Stoppage Amount field refers to the amount calculated over the contract advance.

Organizational unit, department, corresponding account type (AR/AP), AR/AP code (supplier code in the contract), credit amount, stoppage amount, contract number and transaction type information is transferred to bank slip of Collection type automatically according to the contract.

Credit Amount is the remaining advance amount. (Contract Advance Amount - Total Advance Amount)

Stoppage Amount is calculated with (Advance Amount * Stoppage Amount) / (Stoppage Rate) formula.

Transaction Type would be Advance.

  • The status of the Contracts, which are related with an Advance slip, cannot be changed into "Draft" or "Cancelled".

Posting Advance Slips to the General Ledger

Posting Advance slips to the general ledger differs from the other AR/AP slips. While posting slips of payment and collection types to G/L, Advance account works in Advance slips instead of the AR/AP. The balance is transferred to the stoppage account for Advance Slips for which stoppage amount is calculated.

Stoppage amount = (Advance Amount * Stoppage Rate) / (1-Stoppage Rate)

The relevant accounts related to the AR/AP G/L connection codes are used for Stoppage and Advance Accounts. The Connection code for Advances Issued for Payment and Advances Received for Collection are considered.