# Raise an Advance Invoice

An advance invoice looks like an ordinary invoice and posts somewhere completely different.

Raising one is three decisions: who, how much, and what to call it so the customer knows what they are paying for.

## Raise it

- **Open the form**

  Go to **Sales > Advance Invoices > New**.

  ![The Create Advance Invoice form. Advance Invoice Details holds a required advance number and date. Item Details below carries a line table with columns for Type set to Service, Description, VAT and Amount, with customer notes and terms beneath.](https://www.sorviai.com/help/advance-invoices/new-advance-invoice-form.png)
- **Pick the customer**

  The advance is held in their currency, and can only ever be applied to invoices in that currency.
- **Enter the amount**

  Advance lines describe what the money is for rather than itemising deliverables. A single line saying "50% deposit against order SO-1042" is better than a copy of the order.
- **Check the tax treatment**

  Whether tax is due on an advance depends on your jurisdiction. The treatment set here is what your tax return will use.
- **Send it**

  It behaves like an invoice from the customer's side: a PDF, a portal link and a due date.

> **Tip:**
>
> **Reference the order it relates to**
>
> An advance with no reference becomes a mystery balance within a quarter. Put the quote or order number in the line description and in the reference field.

## Collecting the money

Payment against an advance invoice is recorded exactly like any customer payment. The difference is where it lands: instead of clearing a receivable, it creates an available balance on the customer, sitting as a liability until you earn it.

- The advance is only usable once it has actually been paid. An unpaid advance invoice holds no balance.
- A partial payment creates a partial balance, which can still be applied.
- The balance appears on the customer overview as **advance held**, separately from unapplied credit.

## Common shapes

- **Deposit** (percentage up front): A share of an agreed order, taken before work starts and applied to the final invoice.
- **Retainer** (topped up): A standing balance drawn down by invoices as work is delivered, topped up when it runs low.
- **Prepayment** (paid in full): The whole amount taken before delivery. The eventual invoice is fully covered by the advance.