Understanding the GL Impact of Advance Payments in Hungary

Sample use case:

Partial advanced Payment has been made for a sales order.

Total Sales Order Amount: 50 Euro

Partial Advanced Payment: 10 Euro

Step 1: An advanced payment invoice has been created.

Advanced Payment Invoice
Account	Debit	Credit
Accounts Receivable	10
Other Current Liability More Information This is the account selected for the Payment Type item used in the Advanced Payment Invoice. This entry will be offsetted by the future final A/R of the actual sales invoice.		10

Step 2: The payment transaction for the advanced payment invoice has been created

Payment
Account	Debit	Credit
Accounts Receivable		10
Other Current Liability More Information This is the account selected for the Payment Type item used in the Advanced Payment Invoice. This entry will offset the A/R entry from the advanced payment invoice.	10

Step 3: The actual invoice for the sales order has been created

Actual Sales Invoice
Account	Debit	Credit
Accounts Receivable	40
Revenue Account		50
Other Current Liability More Information This is the account selected for the Payment Type item used in the Advanced Payment Invoice. This account will be the clearing account for the advanced payment recorded and will be offsetted by the advanced payment line in the actual final invoice.	10

Step 4: The payment transaction for the actual invoice for the sales order has been created

Payment
Account	Debit	Credit
Accounts Receivable		40
Other Current Liability More Information This is the account selected for the Payment Type item used in the Advanced Payment Invoice. This account will be the clearing account for the advanced payment recorded and will be offsetted by the advanced payment line in the actual final invoice.	40

Conclusion:

At the end of this process: