Advances, deposits and proforma invoices

Many garages take a deposit before ordering parts. In Zeyto Garage Pro the deposit is an advance taken against the job card. An advance is money received before a supply, so it is not revenue; the system keeps it as a liability until the final invoice uses it.

Why an advance is a tax invoice

In the UAE the tax point is the day the money is received. The advance receipt is therefore a gapless-numbered document that prints as TAX INVOICE (ADVANCE) when VAT was charged at receipt. It shows your TRN, the customer's TRN and address, the date of receipt, the advance against Job Card JC-nnnn with the plate, and a one-row tax table. With no VAT it stays a plain ADVANCE RECEIPT, and the title follows the VAT actually posted.

The VAT inside an advance is 5/105 of the money. When the final invoice applies the advance it reverses exactly that slice, so the supply is taxed once. The final invoice prints the advance tax invoice number and dates, Less: Advance and Less: VAT on advance.

Rules to remember

• An advance is possible only before the invoice. Afterwards the money is a receipt against the invoice.
• A cheque advance records the cheque date and drawee bank, kept for information. A post-dated cheque advance declares no VAT at receipt.
• To give an advance back, cancel the advance receipt, then cancel the job if needed. The job cancellation lists it first.
• The Advances screen shows the ledger's total, not just the newest rows.

Proforma invoice

A proforma invoice is a priced paper for a customer who wants one before paying, for example for his employer. It posts no stock and no cost. It is available once work is approved, is refused when everything is already invoiced and on a warranty job, and can be marked as sent. Create invoice from proforma turns it into the real invoice.