Advance payment means that the buyer pays a certain amount of advance payment to the seller after the transaction contract is signed.This method is not conducive to the buyer, and is generally adopted when the supply of trading goods exceeds the demand.Buyer to bearBusiness riskThe backlog of funds actually provides credit to the seller;The seller receives payment before delivery, which is conducive to capital turnover and no commercial risk.There are two cases of advance payment: one is the guarantee for the importer to execute the contract, usually calledDepositThe term of advance payment is short, accounting for a small proportion of the transaction amount;The other is that the importerexporterProvide credit with a long advance period and large amount.[1]
1. There is no limit on the amount of advance payment;
2. The advance payment is part of the payment of the main contract. The agreement of the parties on the advance payment is promissory and does not take the actual delivery as the effective element;
3. Advance payment is part of the priceAdvance payment, which is still in the nature of liquidation;
4. The advance payment has no effect of two-way or one-way guarantee, which is caused by the party's failure to perform the contractrescission of a contractThe advance payment shall be returned.Parties'Liability for breach of contractIt is determined by other terms agreed in the contract. If there is no agreement on the liability for breach of contract, it generally does not bear the liability for breach of contract.
The so-called "deposit" means that the parties to the contract agree that one party shallContract conclusionOn or offContract performanceGive the other party a certain amount of money in advance to ensureContractual claimsImplementedGuarantee mode。Advance payment and deposit have some similarities, but they are fundamentally different in nature. The differences are as follows:
1. Different nature.
The deposit isearnest money contractThe main content of the payment or acceptance of deposit is not performance itselfprincipal obligationThe obligation is the way to guarantee the debt, and it is the act of performing the deposit contract.
The advance payment isMain contractOne of the contents of the "payment in advance" is the act of performing the main debt.
2. Different functions.
The function of advance payment is to help the other party solve financial difficulties and make it more conditionalProper performanceContract, supporting;
Although the deposit also has this function, its main function lies inGuarantee contractPerformance of.In addition, the deposit can also prove whether the contract is established in case of disputeFormation of contractRole of.The advance payment has no function of guarantee and contract.
3. Different effects.
The advance payment becomes part of the price when the contract is performed normally. When the contract is not performed, the advance payment shall beOriginal numberreturn.
The deposit is different. When the contract is performed, whether the deposit is recovered or set off against the price should be determined according to the agreement of both parties. It is not necessarily set off against the price. In the case of non performance of the contract, the party who paid the deposit has no right to request the return of the deposit when it fails to perform its obligations;If the party receiving the deposit fails to perform its obligations, it shall return twice the deposit, which is punitive for breach of contract.There is no advance payment.
The deposit is generally paid in a lump sum. After the deposit is paid, the deposit contract can be established.
The advance payment can be made in a lump sum or in installments.
5. The scope of application is different.
Deposit is widely used in contracts. It is not only applicable to contracts that perform obligations with money, but also applicable to other contractsPaid contract。
However, the advance payment can only be applied to contracts that perform obligations with money.
(1) Solve the turnover of one party of the contractShortage of funds。
(2) As the sincerity of contract performance.
Construction bookkeeping
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Problem description:
Our company recently won a bid for a projectCooperative enterpriseRelevant contracts have been signed according toContract contentReceived advance paymentImplementation processChina CouncilThere are some related costs, and the whole project will be completed in a few months. How should the whole process be accounted?
Reference answer:
According to the description of the problem, the whole process can be accounted from the following 7 aspects.
A few days ago, the State Council announced the Regulations for the Implementation of the Law of the People's Republic of China on the Protection of the Rights and Interests of Consumers, which will come into force on July 1, 2024.
After receiving the advance payment, business operators shall provide goods or services in accordance with the agreement with consumers, and shall not reduce the quality of goods or services or arbitrarily increase prices.
Where a business operator fails to provide goods or services in accordance with the contract, it shall, at the request of the consumer, perform the contract or refund the advance payment.
Where an operator has significant operational risks that may affect the normal provision of goods or services by the operator in accordance with the contract or trading practices, the advance payment shall be stopped.
If a business operator decides to suspend business or relocate a service site, it shall notify consumers in advance.In accordance with the relevant provisions of the State or contractual agreements, consumers have the right to require business operators to continue to perform their obligations to provide goods or services, or to demand the return of the balance of the advance payment that has not been consumed.[3]
