Advance payment
An advance payment, or mobilisation advance, is money a client pays a contractor before work starts. It is invoiced and taxed when received and then recovered as a percentage of each later certificate until repaid.
Where you meet it
See how recovery reduces each invoice in the payment certificate calculator. Related: payment certificate and retention.
How SupaJack Construct handles it
Because the advance was already taxed when it was invoiced, the share recovered on each later invoice reduces the taxable value of that invoice instead of being taxed a second time. A project that has received an advance but has no recovery percentage in its payment terms cannot be invoiced in SupaJack Construct until the percentage is recorded.