Advance Payment

(redirected from Advance Payments)
Also found in: Financial.

Advance Payment

 

a payment that precedes a transfer of property, the fulfillment of work, or the rendering of services. Unlike a deposit, an advance payment is not a method of ensuring the fulfillment of an obligation and therefore must be reimbursed if the contract stipulating the advance payment is not fulfilled. According to Soviet legislation, an advance payment among citizens is determined by an agreement between the parties. As a general rule, socialist organizations do not have the right to make or receive advance payments, because this would mean that one organization finances another. Such financing was prohibited by law at the time the 1930 credit reform was enacted (Collection of Laws of the USSR, 1932, no. 74, art. 454). USSR legislation allows advance payments only in some isolated cases. For instance, state construction and installation organizations working on a contract basis have the right to ask for advance payments from their clients (kolkhozes, cooperatives, or public organizations); kolkhozes can request them from consumers’ cooperatives according to contracts for the sale of farm output on commission; and enterprises supplying gas, water, and electric power, communications enterprises, civil aviation, and research and development organizations can request them from contracting parties. Before the kolkhozes were directly credited by banks, they could request advance payments from the appropriate purchasing organizations. Finally, organizations rendering paid services to the population can sign contracts for advance payments.

In Soviet labor law, a planned advance payment is a sum of money paid in the case of piecework pay as part of the wage until the work stipulated in the order is completed. The amount of such an advance payment is set forth in the agreement between the administration and the trade union organization at the time the collective agreement is concluded; however, it cannot be smaller than the worker’s official wage rate for the time put in (Collection of Decrees of the USSR, 1957, no. 6, art. 68).

As a rule, making nonplanned advance payments to workers and employees is prohibited. In exceptional cases, an enterprise may make a nonplanned advance payment to an employee as part of his wage in an amount not greater than his monthly wage. The amount of advance payment to an employee for business trip expenses is determined by the administration.

E. G. POLONSKII

References in classic literature ?
In his pocket was precisely the room- rent for the following week, the advance payment of which was already three days overdue and clamorously demanded by the hard- faced landlady.
Beef Special Premium: Advance payments for a small number of producers started in late December.
5 billion of advance payments related to commercial aircraft orders, as well as $738 million of tax refunds.
The Minister for Agriculture, Food and the Marine, Michael Creed TD, today announced the commencement of advance payments under the 2017 Basic Payment Scheme (BPS) and the Greening Payment.
With retailers receiving advance payments in increasing quantities, the issue of when this income should be reported for federal tax purposes has become more prominent.
Examples of Honda models available under Motability and their necessary advance payments are: Jazz 1.
The European Commission has approved an application from the Department to increase the rate of advance payments from 16 October 2017.
2004-34 to recognize advance payments must be mindful of any changes in the underlying revenue recognition method used for book purposes.
Beef producers will see their advance payments for the beef support schemes increase from 60pc to 80pc for 2003 following pressure by the NFU.
There will also be an increase permitted to the advance for Pillar II Rural Development schemes with the rate increased up to a possible 85% for those schemes where advance payments will be made before the end of the year.

Full browser ?