<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000484" xml:lang="en">
   <Header>
      <Title>Advance installments</Title>
      <Keyword type="header" order="d1e1665511">
         <Level1>Advance installments</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>For regular sales orders, you invoice the business partner for
		delivered goods. The invoice amount is posted to the control account for sales
		invoices. LN calculates and posts the tax amount when you generate the sales
		invoice.</Paragraph>
      <Paragraph>However, long-term projects such as the building of a ship are
		often paid in installments. For sales installments, LN creates an invoice
		for each installment line.</Paragraph>
      <Paragraph>If you request advance payment of the installments from the
		business partner before you deliver the goods, you can post the advance receipt
		request to a separate control account for advance installment invoices. For
		each financial business partner group, you can define separate control accounts
		for advance installment invoices per <Link href="/baanerp/tf/glossary/glossary#000432" role="glossary">sales type</Link>.</Paragraph>
      <Paragraph>To calculate and register the tax on advance installments when
		the invoice is paid, use a tax code of the <GUIRef href="/baanerp/tc/domains/tvat#on.payments" role="option">On Payments</GUIRef> tax type for the advance installment invoice.</Paragraph>
      <Paragraph>In addition, to distinguish <Emphasis>invoiced</Emphasis> advance installments and <Emphasis>paid</Emphasis> advance installments for
		reporting purposes, you can map and post invoiced advance installments and paid
		advance installments to separate ledger accounts. For details, refer to <Link href="/baanerp/tf/onlinemanual/000487" role="manual">Separate ledger accounts for advance installments</Link>
      </Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>The advance receipt requests control account</SectionTitle>
      <Paragraph>In the <GUIRef href="/baanerp/tf/acr/tfacr0515m000#tfacr015.arrc" role="manual">Control Account (ARR Invoice)</GUIRef> field of the <GUIRef href="/baanerp/tf/acr/tfacr0515m000" role="session">Control Accounts by Business Parter Group (tfacr0515m000)</GUIRef> session, you can select the
		control account for advance receipt requests. If you post advance installment
		invoices in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>, LN posts the invoices to this account.</Paragraph>
      <Paragraph>The control accounts for advance receipt requests is included in
		the Open Entries details. LN uses the control accounts for the advance installment invoice and
		all subsequent transactions, such as receipts and currency differences.</Paragraph>
      <Paragraph>When the advance installment invoice is paid in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>, written
		off, factored, or set to <GUIRef href="/baanerp/tf/domains/acr.tran#doubtful" role="option">Doubtful Invoices</GUIRef>, the control account is reversed.</Paragraph>
      <Paragraph>If you change the sales type of the business partner, the
		control account changes. For subsequent transactions, LN uses the new
		control account. However, if you make the invoice <GUIRef href="/baanerp/tf/domains/acr.tran#doubtful" role="option" Update="No">Doubtful</GUIRef>, the control account does not change.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To process the advance receipt request</SectionTitle>
      <List>
         <ListIntro>The advance installment invoice can be paid through the
		  following processes:</ListIntro>
         <ListItem>Assignment of an advance or unallocated receipt to the advance
		  installment invoice</ListItem>
         <ListItem>Application of the receipt to the sales invoice</ListItem>
         <ListItem>Reconciliation of anticipated receipts with the sales
		  invoice</ListItem>
         <ListItem>Processing of Electronic Bank Statements</ListItem>
         <ListItem>Factoring</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>You cannot use the <GUIRef href="/baanerp/tf/acr/tfacr2110s000" role="session">Sales Invoice Corrections (tfacr2110s000)</GUIRef> session to make corrections to advance
		  installment invoices.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000485" role="manual">To set up separate ledger accounts for advance installments</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000487" role="manual">Separate ledger accounts for advance installments</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>