Vorschüssen

Vorschüsse are payments made in advance of the delivery of goods or the provision of services. They can function as a temporary loan or as a prepayment that is later settled against the final invoice. In accounting terms, a Vorschuss is typically recorded as an asset until the corresponding performance occurs or the amount is credited against the final bill.

Common contexts for Vorschüsse include employment, where an employee may receive a Gehaltsvorschuss (salary advance) to cover urgent needs; business-to-business arrangements, where a client pays an Auftragnehmer or supplier an advance to cover start-up costs or material purchases; and project or travel advances to cover early expenses. In projects such as construction, film production, or service contracts, advances help ensure liquidity for the recipient while the work is progressing.

From a contractual and financial perspective, the terms of a Vorschuss (amount, purpose, repayment conditions, duration, and any interest or fees) should be defined in writing. The advance is typically offset against the final invoiced amount once the service is performed or goods are delivered; if the service is not provided, the Vorschuss may be refundable or recoverable depending on the agreement.

Tax and regulatory implications vary by jurisdiction. In many systems, advances may affect VAT accounting and require appropriate documentation. Clear communication and careful reconciliation are important to prevent disputes and ensure proper accounting for both payer and recipient.