# Advance Tax Invoice
An Advance Tax Invoice records customer prepayment before goods or services are fully invoiced. Use it to collect advance tax and post advance liability to accounts. When the final sale is ready, convert the advance to a Sale Invoice from the more menu.
Overview & List View
Go to Sales → Advance Invoice from the left menu.
The Advance Tax Invoice list shows all advance vouchers with customer, date, amount, payment mode, and status. Use quick filters to view Approved, Draft, Cancelled, Closed, or Multi Level Approval entries. From the list you can create new advance invoices, open existing ones, edit drafts, or delete draft entries.
> Advance Tax Invoice uses a dedicated voucher form — not the standard sale bill (sk-bill) layout used by sale quotations, orders, and invoices.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft, For Revisal |
| Delete | Draft, For Revisal |
| View | All statuses |
Quick Start — Create an Advance Tax Invoice
1. Navigate
Go to Sales → Advance Invoice from the left menu.
2. Create new advance invoice
Click New to open the advance voucher entry screen.
3. Fill in details
- Enter Date and select Form Type.
- Enter the Voucher Number (auto-generated when numbering is configured).
- Choose the Customer, Payment mode, and Cash Account for Cash or Bank payments.
- Enter Taxable Amount, select Tax and Tax Rate, and review Tax Amount and Total.
- Select Branch and Employee when applicable.
4. Save
- save — keeps the advance invoice as a Draft.
- Save And Approve — approves and posts advance liability in one step.
- Cancel — closes the form without saving.
5. After approval
- Advance liability is posted to accounts on approve.
- Use Create Invoice from the more menu when you are ready to bill the customer against this advance.
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date of the advance tax invoice. |
| Form Type | Sale type that controls numbering, tax rules, and print layout. |
| Voucher Number * | Unique advance voucher reference. Auto-generated when numbering is configured on the sale type. |
| Customer * | Customer making the advance payment. |
| Payment mode | How the advance is received: Cash, Bank, Credit, Digital Wallet, or Prepaid. |
| Cash Account | Bank or cash account for Cash, Bank, Digital Wallet, or Prepaid payment modes. |
| Branch | Branch for the transaction. Shown when multi-branch is enabled. |
| Employee | Sales employee responsible for this advance. |
| Taxable Amount * | Taxable portion of the advance received. |
| Tax | Tax type applied to the advance. |
| Tax Rate | Rate applied to the taxable amount. |
| Tax Amount | Calculated tax on the advance. |
| Total * | Total advance amount including tax. |
> This form does not include item lines. Amounts are entered directly on the voucher header.
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Finalizes and posts advance liability to accounts. | Draft |
| Edit | Opens the advance invoice for editing. | Draft, For Revisal |
| Delete | Permanently removes the advance invoice. | Draft, For Revisal |
| Clone | Creates a copy of the advance invoice. | All (if permitted) |
| Print | Prints the advance tax invoice. | All |
| Export | Exports the advance invoice to Excel. | All |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Create Invoice | Opens a new Sale Invoice to apply this advance. | Approved |
| Create Advance Credit Note | Opens a new Advance Credit Note to refund or reverse this advance. | Approved, Closed |
| Cancel | Cancels the advance invoice. | Approved |
| Add/Update Note | Adds or edits an internal note. | All |
| Master Update | Updates selected header fields. See Master Update. | Approved, Closed |
| Update Secondary Status | Updates a custom secondary status. | Approved, Closed |
| Get PDF | Downloads a PDF copy. | All except Draft |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. |
| For Revisal | Sent back for changes. Treated like Draft for edit and delete. |
| Approved | Finalized and posted. Advance liability recorded in accounts. |
| Closed | Advance is fully applied or manually closed. |
| Cancelled | Advance invoice has been cancelled. |
| Multi Level Approval | Awaiting multi-level approval workflow. |
Posting note: Advance Tax Invoices post to accounts on approve — recording customer advance liability. They do not update inventory. Use Create Invoice to bill against the advance when goods or services are delivered.
Master Update
Master Update lets you change selected header fields on an approved or closed advance invoice without reopening the full form. Open the three-dot menu and select Master Update.
| **Field** | **Can be updated?** | **Notes** |
|-----------|---------------------|-----------|
| Date * | Yes | Cannot be set before the accounts closing date. |
| Employee In charge | Yes | |
| Branch | Yes | When multi-branch is enabled. |
| Customer, payment mode, cash account, tax amounts, total | No | Edit the full document while Draft, or cancel and recreate. |
Click Confirm to save or Cancel to close without saving.
View Tabs & Side Panels
When you open an advance tax invoice in full view (not in a small modal), the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Top panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Journal Info. | Ledger entries posted when the advance was approved — debit and credit accounts for the advance liability. |
Bottom panel (all transactions)
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the advance and when. |
| Attachments | Files uploaded to this advance invoice. |
Best Practices
- Approve advance invoices promptly so advance liability appears correctly in accounts.
- Use Create Invoice when billing the customer to apply the advance against the final sale.
- Track uninvoiced advance balances using Customer Wise Advance Received.
- Configure Sale Types for correct numbering and tax rules before creating advance invoices.
FAQ
Does an advance tax invoice post to accounts?
Yes. On approve, it posts advance liability to accounts. It does not update inventory.
How is this different from a sale invoice?
Advance Tax Invoice uses a simplified voucher form without item lines. It records prepayment before the final bill. Sale Invoice is the full billing document with items and inventory posting.
How do I apply an advance to a sale?
Use Create Invoice on an approved advance to open a sale invoice linked to the advance.
How do I refund or reverse an unused advance?
Use Create Advance Credit Note on an approved or closed advance. See Advance Credit Note.
Why is Summary or Customer Info not shown?
Advance invoices show Journal Info. in the top panel to display ledger postings. Summary and customer widgets are not available on this transaction type.
Where do I find advance balances by customer?
Use Customer Wise Advance Received under Accounts → Reports.
Why was advance deduction blocked on the sale invoice?
Deduction cannot exceed the un-invoiced advance balance or the invoice total. Apply only approved advances with remaining balance.
Are zero-amount advance lines applied?
No. Lines with zero amount or missing advance reference are ignored when linking advances to a sale invoice.
Can I cancel an advance after it is partly used?
Cancel or adjust applications on linked sale invoices first. Open advance balance must be zero before cancelling the advance voucher.
Does advance invoice affect inventory?
No. Inventory posts only on the final sale invoice when goods are billed and approved.