Advance payment recovery calculator
A mobilisation advance is recovered by deducting an agreed percentage from each later payment certificate until it is repaid. Each deduction is capped at what is still outstanding. Because the advance was invoiced with 5% VAT when received, each recovery reverses the matching share of that VAT.
How the schedule is built
Enter the advance payment excluding VAT, the recovery percentage from the contract, and the certified amounts in order. For each payment certificate the calculator recovers the percentage of the certified value, stops at what is left, and reverses the advance's VAT in the same proportion. This is the same rule SupaJack Construct applies when it raises an invoice from a certificate.
| Certificate | Certified | Recovered | Still to recover |
|---|---|---|---|
| 1 | 1,056,000.00 | 105,600.00 | 374,400.00 |
| 2 | 960,000.00 | 96,000.00 | 278,400.00 |
| 3 | 1,200,000.00 | 120,000.00 | 158,400.00 |
| 4 | 1,440,000.00 | 144,000.00 | 14,400.00 |
| 5 | 1,344,000.00 | 14,400.00 (capped) | 0.00 |
Points to agree in the contract
- The recovery percentage and whether it starts with the first certificate.
- Whether the advance is secured by an advance payment guarantee, and when the guarantee reduces.
- What happens to any unrecovered balance if the contract ends early.
Why the cap matters
A spreadsheet that applies 10% to every certificate keeps deducting after the advance is repaid, and the client underpays. SupaJack Construct reads what has already been recovered from the posted entries, so the last deduction stops exactly at zero. See the interim payments guide and use the gratuity calculator, final settlement calculator, overtime calculator, annual leave calculator, unpaid leave calculator, payment certificate calculator, retention calculator, advance recovery calculator, VAT calculator and the WPS file checker.
Worked example
A contractor receives a AED 480,000 advance plus AED 24,000 VAT, recovered at 10%. The first certificate of AED 1,056,000 recovers AED 105,600 and reverses AED 5,280 of the advance VAT. By the fifth certificate only AED 14,400 is left, so that certificate recovers AED 14,400 instead of 10%, and the advance is fully repaid.
Questions people ask
What is advance payment recovery?
The deduction of an agreed percentage from each certificate until the mobilisation advance is repaid.
Is VAT charged on the advance?
Yes. The advance is invoiced with 5% VAT when it is received, which triggers the date of supply.
Why is VAT reversed on each recovery?
The advance was already taxed, so each recovery reduces the taxable value of the later invoice instead of taxing the same money twice.
What recovery percentage is usual?
The contract sets it, often matching the advance as a share of the contract value.
Can recovery exceed the advance?
No. Each deduction is capped at what is still outstanding.
What secures an advance?
Usually an advance payment guarantee from the contractor's bank, reduced as the advance is recovered.
Does recovery start immediately?
It depends on the contract; some start with the first certificate, others after a set value of work.
What if the contract ends early?
The unrecovered balance is usually repayable; the contract and guarantee decide how.
How does SupaJack Construct handle a missing recovery rate?
It refuses to invoice a project that received an advance but has no recovery percentage recorded, and says what is missing.
Does the recovery show on the invoice?
Yes. SupaJack Construct shows it as a separate line so the client sees why the taxable value is lower.