A taxed advance issues an Odoo down-payment invoice through Odoo's own tax engine, so the tax is recognized in the period the advance is received and lands on the standard tax report. Applying it to the final invoice adds a deduction line, so there is no double VAT.

Under Reporting, see every advance that still has a remaining balance, bucketed by age 0-30, 31-60, 61-90 and 90+ days. Available as both a list and a pivot, so you can spot prepayments that have been sitting too long.

Return any unused advance in one click, full or partial. An untaxed advance posts a reversing entry, a taxed advance issues a proper credit note, so the VAT is reversed correctly on the tax report.

Each partner form shows an Outstanding Advances total and count, with a smart button that opens exactly those advances, so you always know what a customer or vendor has prepaid.

Customer advances credit a current-liability account, vendor advances debit a current-asset account, so deposits and prepayments appear correctly on the balance sheet.

When a taxed advance is applied to the final invoice, a deduction line is added the same way Odoo's native sale down payments work, so the tax is only charged once.

Applications reconcile through Odoo's standard mechanism and show in the partner ledger. Every journal entry links straight back to its Advance Payment.

Apply one advance across several invoices, or several advances to one invoice. The remaining balance updates automatically.

Set the customer and vendor advance accounts once in Accounting Settings. They pre-fill each advance and stay editable per record.

The bank side posts to the journal's Outstanding Receipts or Payments account, just like a standard payment, so bank statement matching still works.

Advance accounts are kept reconcilable automatically, and entries tied to an advance are protected from accidental reset so balances stay consistent.

A down-payment invoice is issued through Odoo's tax engine, so the VAT or GST is recognized in the period the advance is received and shows on the standard tax report.

A deduction line is added the same way native sale down payments work, so the advance reduces the amount due without charging the tax a second time.

A reversing bank entry is posted and the advance account is reconciled, returning the unused amount to the partner.

A proper credit note is issued, so the VAT or GST is reversed correctly on the tax report instead of being left overstated.

In Accounting Settings, choose the default customer advance liability account and vendor advance asset account. They are made reconcilable automatically.

Create an Advance Payment of type Customer or Vendor, enter the amount and add a tax if the advance is taxable. A taxed advance issues a down-payment invoice so the VAT or GST is recognized straight away.

Click Apply Advance on the invoice or bill, choose how much of which advance to apply, and confirm. For a taxed advance a deduction line keeps the tax from being charged twice.

If an advance is no longer needed, click Refund and return the remaining balance, in full or in part. Untaxed advances post a reversing entry, taxed advances issue a credit note.

Open the Aged Advances report under Reporting to see remaining balances by age, and check the Outstanding Advances total and smart button on any partner.

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