Administration Manual - B.E.S.T. Undertaking.

(c) payments for clearance of documents from banks;
or
(d) for opening letters of credit in respect of imports.
3.7.8 Advance payments are made against delivery or proof of dispatch or
bank advice.
A variety of conditions relate to Advance Payments such as –
(i) payments against Railway Receipts;
(ii) goods consignment notes;
(iii) delivery orders received through banks;
(iv) on Letters of Credit or Sight Drafts.
3.7.9 Normally some advance payment is made and balance payment at a
later date after completion of supplies or guarantee period as the case
may be.
3.7.10 In the case of a Regular Bill the supplier sends invoice accompanied by
Stores Received Note. In the case of an Advance Payment a
‘PROFORMA INVOICE’ , which is equivalent to a regular invoice is sent.
An Advance Payment Bill Voucher is then prepared in the same
manner as for a Regular Payment Voucher. A stamp is affixed on the
face of the ‘PROFORMA INVOICE’ to indicate the amount of payment
made and entries are made therein to indicate details of such advance
payments made. Entries are also made on the payment copy of the
Purchase Order giving all details of the advance payments made.
3.7.11 Sometimes payment is required to be made even before the Purchase
Order is drawn. This is done on approval of the General manager and
a confirmatory Purchase Order is subsequently drawn to regularize the
transaction.
3.7.12 All Advance Payments are approved by Chief Accounts Officer &
Financial Advisor before making payment to outside parties.
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