Construction

Supplier Advance Offset Against Delivery

Clearing the advance when the supplier delivers materials and invoices the project.

Account NameTypeDebit ($)Credit ($)
Material Inventory / WIPAsset (+)50,000.00-
Advances to SuppliersAsset (-)-50,000.00

💡 Accountant's Note

When materials arrive, the advance is offset against the invoice value. If there is a remaining balance after offsetting, cash or payables are used for the difference.

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