Construction
Supplier Advance Offset Against Delivery
Clearing the advance when the supplier delivers materials and invoices the project.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Material Inventory / WIP | Asset (+) | 50,000.00 | - |
| Advances to Suppliers | Asset (-) | - | 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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