Customer And Supplier Advances

An advance records money received from a customer or paid to a supplier before the final Commercial Invoice or Supplier Bill is posted. This guide is for an ADMIN using the current Supply Weave web screens.

Creating an advance posts accounting immediately. There is no draft, edit, or separate Post step. Review the order, amount, date, currency, exchange rate, account, and evidence before selecting Create Customer Advance or Create Supplier Advance.

Routes And Access
Eligibility Rules
Create A Customer Advance
Create A Supplier Advance
Accounting Effect
Automatic Application
Review The Detail Page
Cancel An Unapplied Advance
Order Cancellation Guard
BDT And Foreign-Currency Boundaries
Evidence To Retain
Troubleshooting

Routes And Access

In the sidebar, open Accounting Operations and select:

Customer Advances at /customer-advances;
New Customer Advance at /customer-advances/create;
Supplier Advances at /supplier-advances; or
New Supplier Advance at /supplier-advances/create.

These routes require the ADMIN role. The list pages support search by advance number and Filters for Status, Currency, Date From, Date To, and sorting. Open an advance number or View Details to inspect its application history.

Eligibility Rules

The application checks all rules again when the advance is created. A selection appearing in a web list does not override these controls.

Rule	Customer advance	Supplier advance
Payment method	Sales Order must be `CASH`	Purchase Order must be `CASH`
Order status	`CONFIRMED_PENDING_LC` or `CONFIRMED_LC_LINKED`	`CONFIRMED_PENDING_LC` or `CONFIRMED_LC_LINKED`
Party	Selected Customer must match the Sales Order	Selected Supplier must match the Purchase Order
Currency	Advance currency must match the Sales Order	Advance currency must match the Purchase Order
Amount	Must be positive	Must be positive
Cumulative cap	Total `ACTIVE` advances cannot exceed the Sales Order total	Total `ACTIVE` advances cannot exceed the Purchase Order total
Posting date	Advance Date, or the current date when omitted, must belong to an existing `OPEN` accounting period	Same
Account	Must be an active leaf account; the web picker shows active ASSET leaves classified `CASH` or `BANK`	Same

The cumulative cap uses the full order total:

Customer: sum of ordered quantity multiplied by unit price.
Supplier: sum of ordered quantity multiplied by unit cost.

It includes earlier ACTIVE advances against the same order, whether those advances are still available or have already been applied. A cancelled advance no longer consumes the cap.

Important: Advances are not available for LC-payment orders. A status name containing LC_LINKED does not mean the order uses LC payment: confirmed CASH orders also use CONFIRMED_LC_LINKED in the current workflow. The separate Payment Method must be CASH.

After an active customer advance exists, the Sales Order payment method cannot be changed from CASH to LC. Cancel an entirely unapplied advance first when the business has approved that change. An advance with any application cannot be cancelled or converted into an LC workflow.

Create A Customer Advance

Open Accounting Operations > Customer Advances.
Select New Customer Advance.
In Advance Info, choose Advance Date. If it is cleared, the application uses the current date.
Leave Currency as Use sales order currency, or select the same currency as the Sales Order.
Enter the positive Amount and verify that this amount plus all earlier ACTIVE advances does not exceed the order total.
Enter Exchange Rate when required. If left empty, the stored default is 1.00000000.
Enter available evidence fields: Cash / Cheque / Pay Order No., Payer Name, Payer Title, Payer Organization, and Narration.
In Customer, select the customer.
In Sales Order, select an eligible confirmed CASH order for that customer. The picker displays its order number and total.
In Deposit Account, select where the money was received. The picker is limited to active ASSET leaf accounts classified as CASH or BANK.
Review every field, then select Create Customer Advance.
Verify that the detail page shows status ACTIVE, the expected amount, and Applied Amount of zero unless a later invoice has already been posted.

The application assigns a daily customer-advance number and posts the accounting entry in one transaction. If any validation or posting step fails, it does not leave a partially created advance.

Create A Supplier Advance

Open Accounting Operations > Supplier Advances.
Select New Supplier Advance.
In Advance Info, choose Advance Date. If it is cleared, the application uses the current date.
Leave Currency as Use purchase order currency, or select the same currency as the Purchase Order.
Enter the positive Amount and verify that this amount plus all earlier ACTIVE advances does not exceed the order total.
Enter Exchange Rate when required. If left empty, the stored default is 1.00000000.
Enter available evidence fields: Cash / Cheque / Pay Order No., Recipient Name, Recipient Title, Recipient Organization, and Narration.
In Supplier, select the supplier.
In Purchase Order, select an eligible confirmed CASH order for that supplier. The picker displays its order number and total.
In Payment Account, select where the money was paid from. The picker is limited to active ASSET leaf accounts classified as CASH or BANK.
Review every field, then select Create Supplier Advance.
Verify that the detail page shows status ACTIVE, the expected amount, and Applied Amount of zero unless a later bill has already been posted.

The application assigns a daily supplier-advance number and posts the accounting entry in one transaction.

Accounting Effect

All journal amounts and financial reports are in BDT. The advance amount is multiplied by its stored exchange rate for the initial BDT journal.

Creation action	Debit	Credit
Customer advance	Selected Deposit Account	`2300` Customer Advances Received
Supplier advance	`1400` Supplier Advances	Selected Payment Account

Example: receiving a BDT 30,000 customer advance posts Debit Bank BDT 30,000 and Credit Customer Advances Received BDT 30,000. Paying a BDT 20,000 supplier advance posts Debit Supplier Advances BDT 20,000 and Credit Bank BDT 20,000.

Creating an advance does not post a sale, purchase, Accounts Receivable, or Accounts Payable entry. Those effects occur when the Commercial Invoice or Supplier Bill is posted.

Automatic Application

An ACTIVE advance is not manually allocated from the advance screen. Application happens automatically when a related final document is posted:

Posting a Commercial Invoice applies available customer advances for its Sales Order.
Posting a Supplier Bill applies available supplier advances for its Purchase Order.
The system consumes advances FIFO: earliest Created At, then record ID when creation times are equal.
Each application is recorded against the advance and the invoice or bill.

Customer Flow

Posting the Commercial Invoice records the full sale: Debit Accounts Receivable and Credit Revenue in BDT.
The system applies available customer advances up to the invoice amount.
It records Debit 2300 Customer Advances Received and Credit Accounts Receivable for the applied amount converted at the Commercial Invoice exchange rate.
If the advance covers only part of the invoice, the Commercial Invoice remains POSTED; collect the remaining balance through Customer Receipts.
If advances cover the full invoice, it becomes PAID automatically during posting.

Supplier Flow

Posting the Supplier Bill records Debit GRNI and Credit Accounts Payable for the full bill amount under the current procurement accounting model.
The system applies available supplier advances up to the bill amount.
It records Debit Accounts Payable and Credit 1400 Supplier Advances for the applied amount.
If the advance covers only part of the bill, the Supplier Bill remains POSTED; pay the balance through Supplier Payments.
If advances cover the full bill, it becomes PAID automatically during posting.

An advance can be spread across multiple invoices or bills. Likewise, one invoice or bill can consume multiple advances in FIFO order.

Review The Detail Page

The Overview tab shows:

Advance Details: Advance No, Date, Amount, Applied Amount, Available Amount, and Status;
Parties & Account: customer or supplier, linked order, selected account, Currency, Exchange Rate, payment reference, payer or recipient details, and Narration;
Metadata: Created At, Created By, and Cancelled At; and
Applications: linked Commercial Invoice or Supplier Bill number and the amount applied to it.

Interpret the amounts as follows:

Amount is the original advance in the order currency.
Applied Amount is the sum allocated to invoices or bills.
Available Amount is Amount minus Applied Amount.

The History tab shows the audit trail for the advance. Use Journal Entries and General Ledger to inspect accounting; the advance detail page does not show the journal lines themselves.

Cancel An Unapplied Advance

Cancellation is allowed only when the advance is ACTIVE and no amount has ever been applied. After the first application, Cancel Advance is disabled on the detail page and the server rejects cancellation.

Open the advance detail page.
Confirm that Applied Amount is zero and Applications is empty.
Select Cancel Advance.
Review the confirmation and select Confirm Cancel.
Verify that status becomes CANCELLED and Cancelled At is populated.
Verify the original journal and its separate reversal in Journal Entries or General Ledger.

Cancellation uses the current UTC date, not the original advance date. That current date must belong to an OPEN accounting period. The application preserves and marks the original journal as reversed, creates a separate journal with debit and credit swapped, and frees the cancelled advance’s order cap.

Do not enter a duplicate negative advance or an unlinked manual journal to imitate cancellation.

Order Cancellation Guard

An order with an unapplied ACTIVE advance cannot be cancelled. The application instructs the operator to cancel or refund the advance first.

In normal workflow, advances can only be created after confirmation while Sales Order and Purchase Order cancellation is currently DRAFT-only. The guard remains a data-integrity control for any order state in which cancellation is attempted.

An advance that has been applied cannot be cancelled merely to make order cancellation possible. Retain the records and obtain the approved operational and accounting correction instead.

BDT And Foreign-Currency Boundaries

Advance documents retain their order currency, but journal lines are BDT.
The initial customer or supplier advance journal uses Advance Amount multiplied by the advance’s Exchange Rate.
Customer advance application uses the Commercial Invoice exchange rate when clearing Customer Advances Received against Accounts Receivable.
Supply Weave does not currently provide a separate realized-FX calculation in the advance-application workflow.

Important foreign-procurement limitation: Purchase Orders and Supplier Bills do not currently carry a procurement booking exchange rate. Supplier Bill and supplier-advance application journals retain the existing base-BDT assumption, while the initial supplier advance journal can use its entered exchange rate. Do not use a non-BDT procurement advance without an approved accounting procedure and CA review. Confirm how 1400 Supplier Advances and Accounts Payable will be reconciled before posting.

For BDT advances, use exchange rate 1. Do not enter a convenient rate merely to pass validation. Retain the approved rate evidence for every foreign-currency advance.

Evidence To Retain

Retain enough evidence for another reviewer to connect the cash movement, order, application, and accounting:

advance number, date, amount, currency, and exchange rate;
bank statement, cash record, cheque, pay order, or transfer reference;
payer or recipient name, title, and organization where relevant;
linked Sales Order or Purchase Order and evidence that it is CASH and confirmed;
customer or supplier identity and currency match;
order total, earlier active advances, and cumulative-cap calculation;
selected Deposit Account or Payment Account;
linked Commercial Invoice or Supplier Bill applications;
original and reversal journal IDs if cancelled;
approval and foreign-exchange-rate support; and
History tab and relevant Audit Log records.

Troubleshooting

The Order Does Not Appear

Select the customer or supplier first.
Confirm the order uses payment method CASH.
Confirm its status is CONFIRMED_PENDING_LC or CONFIRMED_LC_LINKED.
The picker loads up to 100 recent matching CASH orders. Use the order screens to verify the record if it is not in that lookup result.

Payment Method, Party, Or Currency Is Rejected

Use the party and currency from the selected order. Advances cannot be moved to a different party and cannot be created for an LC-payment order.

Total Advances Would Exceed The Order

Review every ACTIVE advance against the order. The cap counts the full amount of active advances, including amounts already applied. Reduce the new amount or cancel an eligible, wholly unapplied advance. Do not split a larger amount into duplicate documents to bypass the cap.

No Deposit Or Payment Account Appears

The web picker shows active ASSET leaf accounts classified as CASH or BANK. Check Chart of Accounts for the account’s active state, hierarchy, type, and liquidity classification. Do not substitute an unrelated account.

The Date Is Rejected

The Advance Date must be within an existing OPEN accounting period. Do not change the date only to bypass a closed period. Follow the approved reopen or current-period correction procedure.

Cancel Advance Is Disabled Or Rejected

The advance must be ACTIVE with no applications. Any application permanently blocks advance cancellation. A current OPEN period is also required for the reversal. Check Applications, Status, and the fiscal calendar.

Invoice Or Bill Was Not Auto-Paid

Review Applied Amount and Available Amount across all advances for the order. Partial coverage leaves the invoice or bill POSTED; settle the balance through a Customer Receipt or Supplier Payment. Also verify that the final document belongs to the same underlying order.

A Journal Is Missing

Creation should fail atomically if the system account or journal cannot be written. Do not retry by creating a duplicate until you have confirmed whether the advance exists. Search Journal Entries using the advance source and escalate an accounting-integrity error to the system administrator.

Return to the Accounting User Guides index.

Reviewed against the application on: 2026-08-21