CFDI Advance Payments: What They Are and How to Invoice Them Properly

When a client makes a payment before the final good or service is delivered — and the total value or exact item is still unknown — a CFDI advance payment must be issued. This type of electronic invoice ensures proper tax compliance with SAT and helps avoid discrepancies.

What is an advance payment invoice?

An advance payment invoice is a CFDI of type “Ingreso” (income) issued when you receive payment before the transaction is finalized. It is required when:

• The product or service to be delivered is not yet determined.
• The total value of the transaction is still unknown.

What is not considered an advance payment?

According to SAT regulations, the following do not count as advance payments:

• When a payment is made as a deposit or guarantee, such as in a lease agreement.
• When there’s already an agreement (even if not in writing) on the good or service and its price, and a partial payment is received.

Why issue a CFDI for advance payments?

Properly issuing a CFDI for an advance helps you:

• Stay compliant with Mexican tax regulations.
• Avoid issues with SAT due to unreported income.
• Provide your customer with proof of payment.
• Reconcile your accounting records more easily.

How to issue a CFDI for an advance payment

Issuing advance payments requires three key steps:

1. Income CFDI for the advance received

This is the first invoice to issue when the payment is received:

• CFDI Type: Ingreso (income)
• Description: “Advance payment for future good or service”
• Product/Service Code: 84111506
• Unit Code: ACT
• Amount: The total amount received as advance
• Payment Method: Based on the method used (e.g., bank transfer, cash)
• Payment Way: PUE (single payment)

2. Income CFDI for the full operation

Once the transaction is finalized, issue the invoice for the total value:

• CFDI Type: Ingreso
• Amount: Full value of the transaction (including the advance)
• Payment Method: Based on the method used
• Payment Way: PUE if fully paid, or PPD if there’s still a balance due
• Related CFDI: Link it to the previously issued advance CFDI
• Relationship Code: 07 – Application of Advance Payments

3. Credit Note CFDI (egreso)

A credit note must be issued for the amount of the advance:

• CFDI Type: Egreso (outflow)
• Amount: Equal to the advance received
• Description: “Application of Advance Payment”
• CFDI Use: G02 – Returns, discounts or bonuses
• Related CFDIs: Linked to both the advance invoice and the final invoice
• Relationship Code: 07 – Application of Advance Payments

Automate CFDI issuance with our API

At Facturapi, you can automate any type of CFDI issuance, including the correct handling of advance payments. Our CFDI API ensures SAT compliance, accuracy, and speed in your invoicing processes.

Want to streamline your invoicing?

📩 Contact us or learn more at www.facturapi.io