Within Simplicate, it is possible to send an advance invoice. This can be done for both companies and individuals. An advance invoice allows an invoice to be sent as a prepayment for services that will be performed and invoiced later.

Before it is possible to send advance invoices, a setting must be enabled. You can do this by going to Settings > Invoices > General Invoicing Settings. Then check ‘Activate Advance Invoice’ and set the VAT code and revenue group. We recommend using a separate general ledger account and revenue group in the accounting system to record advances.

After activating the feature, you can create an advance invoice for a specific customer and project. To create an advance invoice, go to the Invoice module > Draft Invoices, and then click the ‘New’ button in the top right corner.

A pop-up will appear where you select the debtor for whom the advance is to be created. Important: also choose the project the advance pertains to, so the revenue is allocated to the correct project.

With the ‘Advance Invoice?’ option, you determine whether it is an advance invoice. Choose Yes to create an advance invoice.

When you choose this option, an invoice is generated. If you then look under the ‘Services’ tab, an advance item is already created. You can edit this advance item as needed or choose to add multiple advance items. It is not possible to add other types of invoice items, such as Fixed Price items.

If you choose not to create an advance invoice, you can invoice services ‘separately.’ It is only possible to add invoice items based on Fixed Price using the ‘New’ button.

Note: These amounts are direct revenue and cannot be settled later, as is the case with an advance invoice.

Note:

After sending the advance, the amount will appear under ‘To be invoiced’ as a negative item. It is then possible to settle the advance with the final invoice.

When an advance item appears under To be invoiced, you can view more information on when this advance item was created and which advance invoice it pertains to via Actions > More Information.

Settling

When you want to settle the advance item, check it from the To be invoiced screen and combine it with the services you have provided.

You will have two choices if the value of the selected invoice proposals is lower than the remaining balance of the advance to be settled.

We explain the two options:

Create Invoice with full deposit:

The selected services are settled with the value of the advance items. In other words, this option creates a settlement of the spending and already invoiced advance items. This leads to a credit invoice, as the negative amount (advance settlement) is higher than the positive amount (the invoice items).

Make invoice with deposit equal to selection:

When you choose this option, the value of the advance will be matched with the value of the services. This option is used to recognize the advances as revenue / interim settlement.

Note: It is not possible to make changes to the settled advances on the draft invoice! Therefore, ensure that the value of the services is 100% correct before settling them with the advances.

If you want to adjust the amount to be settled after the advance is on the draft invoice, delete the draft invoice, which will reset all items to 'To be invoiced'.

Crediting an Advance Invoice?

Once you have sent an advance invoice, it is no longer possible to credit it. An advance may have already been (fully) settled with services you have provided.

If you have sent an invoice where the advance has been used as a settlement with services you have provided, it can be credited, but only if it is not a negative invoice.

Example:

If the final invoice was -500 euros (already a credit), this invoice cannot be credited. Need help with your advance or credit invoice? Send a message to support via the question mark in the top right corner of your Simplicate environment.