Adding and Assigning Advanced Payments to Construction Contracts
An advanced payment for a Construction contract is an amount the client pays up front before the work is carried out. It is recorded in Daftra as an advanced payment invoice, and then it is gradually recovered (deducted) from Payment Certificates invoices. From the Advanced Payments list in the contract, you can create a new advanced payment invoice or link an existing invoice to the contract.
Table of Contents
Before You Begin
- Enable Advanced Payments in Sales Settings. Without it, the message You are not allowed to access this page appears when you try to add one.
- In the contract, set the advanced payment amount and the recovery plan from Edit.
Add an Advanced Payment
You create a new advanced payment invoice that is linked directly to the contract.
- Open the contract, and click Advanced Payments > Add Advanced Payment.
- An advanced payment invoice opens. The client and currency are set from the contract and cannot be changed.
- Enter the payment amount and the invoice details, and record the payment if you have received it.
- Click Save. You return to the contract page, and the invoice is linked to it.
Assign an Advanced Payment
You link an advanced payment invoice that already exists to the contract, such as a payment you received before creating the contract.
- Open the contract, and click Advanced Payments > Assign Advanced Payment.
- The Link Advanced Payment Invoice window opens. It lists the advanced payment invoices for the same client as the contract and in the same currency that have not been fully used and have not been linked to the contract.
- Select the invoice or invoices.
- Click Assign Advance Payment Invoice. The message The advanced payment invoice has been linked appears.
🛈
Note: You can also link advanced payment invoices from the Advanced Payment Invoice field when you Edit the contract.
Unlink an Advanced Payment Invoice
From the list of advanced payment invoices in the contract, remove the invoice from the contract. The message The invoice has been removed from the contract successfully appears. The invoice itself remains as it is.
Recovering the Advanced Payment from Payment Certificates
- When you invoice each Payment Certificate, the system calculates the recovery amount based on the recovery plan and deducts it from the Advanced Payment invoices linked to the contract.
- The recovery is filled in automatically in the Advanced Payments section of the Payment Certificate invoice: from a single invoice that covers the amount, if one exists; otherwise, it is distributed across the invoices, starting with the one with the largest balance.
- The status of the Advanced Payment appears in the contract: Collected when it has been fully recovered.
Effect on the System
| Action | Effect |
|---|---|
| Add an Advanced Payment | An Advanced Payment invoice is created using the Advanced Payment invoice numbering, along with a journal entry: debit the Client and credit the Advanced Payments from Clients account. The Client’s balance is affected. The Activity Log records: The Advanced Payment invoice was created and linked to the contract. |
| Assign an Advanced Payment | Linking only, with no new journal entries. The Activity Log records: The Advanced Payment invoice was linked. |
| Unlink | Removes the link only, and the action is recorded in the Activity Log. |
Error Messages and Solutions
| Message That Appears | Cause | Solution |
|---|---|---|
| You are not allowed to access this page | Advanced Payments are not enabled in Sales Settings, or you don’t have permission to add invoices. | Enable them or request the permission. |
| Invalid advance payment #(number), contract client id and currency code should be the same… | The invoice belongs to a different Client or uses a different currency. | Select an invoice for the same Client and currency. |
| …advance payment invoice un settled amount should be greater than 0 | The invoice has been fully used. | Select an invoice that has a remaining balance. |
| Failed to link the Advanced Payment invoice | The link could not be created. | Try again. |
| Please select at least one item | You haven’t selected any invoice. | Select an invoice. |
Frequently Asked Questions
What is the difference between adding an Advanced Payment and assigning an Advanced Payment?
Adding creates a new Advanced Payment invoice, while assigning links an existing invoice to the contract.
Why doesn’t the Advanced Payment invoice appear in the assignment window?
Because it belongs to a different Client, uses a different currency, has been fully used, or is already linked to the contract.
How is the Advanced Payment deducted from Payment Certificates?
Automatically when you invoice the Payment Certificate, based on the recovery plan.