Advance payment

Description

A prepayment is the payment of a Customer before the start of the delivery or service. As a rule, advance payments are contractually agreed upon conclusion of the contract and do not require any on account.

Advance payments are taxable upon receipt; only a few exceptions allow the tax payment to be deferred.

Advance payments without tax deduction can be offset against subsequent invoices. Advance payments with tax deductions automatically print a receipt and have the character of an outgoing invoice.

Prepayment is in the DATAflor Software abbreviated with VZ.


similar terms

Down payment, advance payment