forskud

Forskud is a term used in Norwegian and Danish to refer to an advance payment—money paid before goods or services are delivered, or before wages are earned. It can describe a down payment in a commercial contract or a wage advance to an employee.

In the employment context, an employer may grant forskudd på lønn to provide cash before a scheduled pay date. It is typically treated as a loan, with the amount repaid through future wages or offset against upcoming pay. Terms, including whether interest is charged and how repayment is handled if employment ends, are usually specified in company policy or in the employment contract.

In business transactions, forskudd may be a down payment or deposit from a buyer to a seller, or a prepayment by a customer for future goods or services. Such payments secure an order, cover production or procurement costs, and are usually deducted from the final invoice. Refunds depend on contract terms and the reason for cancellation.

Tax and accounting treatments vary by jurisdiction and context. In general, forskudd is recorded as a liability until the goods or services are delivered or until it is applied to an invoice; applicable taxes such as VAT may depend on local rules.

See also: down payment, deposit, wage advance.