{"id":57131,"date":"2015-10-24T09:12:27","date_gmt":"2015-10-24T02:12:27","guid":{"rendered":"https:\/\/bahtera.jp\/advanced-down-payment\/"},"modified":"2026-09-12T20:58:49","modified_gmt":"2026-09-12T13:58:49","slug":"advanced-down-payment","status":"publish","type":"post","link":"https:\/\/bahtera.jp\/en\/advanced-down-payment\/","title":{"rendered":"Accounting Treatment of Advances and Deposits in Indonesia"},"content":{"rendered":"<p>Advances from customers are processed under the Down Payment account when the invoice is issued. Then, they are transferred to Sales upon receipt of the Surah Terima Berita Acara (receipt certificate) from the customer, which can lead to discrepancies between the invoice issuance amount (A\/R recorded amount) and the accounting Sales for the relevant month.<\/p>\n\t\t\t\t<a href=\"https:\/\/bahtera.jp\/en\/accounting-system-indonesia\/\" class=\"st-cardlink\" aria-label=\"Accounting Systems in Indonesia\">\r\n\t\t\t\t<div class=\"kanren st-cardbox\" >\r\n\t\t\t\t\t\t\t\t\t\t<dl class=\"clearfix\">\r\n\t\t\t\t\t\t<dt class=\"st-card-img\">\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/bahtera.jp\/wp-content\/uploads\/2025\/03\/indonesia-12-150x150.png\" class=\"attachment-st_thumb150 size-st_thumb150 wp-post-image\" alt=\"Infographic structuring accounting systems in Indonesia, highlighting SaaS services, adoption rates, and automation trends\" srcset=\"https:\/\/bahtera.jp\/wp-content\/uploads\/2025\/03\/indonesia-12-150x150.png 150w, https:\/\/bahtera.jp\/wp-content\/uploads\/2025\/03\/indonesia-12-100x100.png 100w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/dt>\r\n\t\t\t\t\t\t<dd>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"st-cardbox-t\">Accounting Systems in Indonesia<\/p>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"st-card-excerpt smanone\">\r\n\t\t\t\t\t\t\t\t\t<p>The adoption rate of SaaS-based accounting systems in Indonesia is less than 8%, despite the advancement of SaaS technology. The continuous launch of new\u2026<\/p>\n\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"cardbox-more\">\u7d9a\u304d\u3092\u898b\u308b<\/p>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/dd>\r\n\t\t\t\t\t<\/dl>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/a>\r\n\t\t\t\t\n<div class=\"article-point\" id=\"key-takeaways\">\n<h2 class=\"article-point-title\">What this article covers<\/h2>\n<ul>\n<li>Advances from customers are processed under the Down Payment account when the invoice is issued.<\/li>\n<li>Under the Percentage of Completion Basis, transfers to Sales are made based on receipt certificates, while the Completion Basis uses different journal entries.<\/li>\n<li>Advanced Payment to suppliers is made without an invoice and managed in the general ledger (G\/L).<\/li>\n<li>Offset processing is performed when offsetting advance payments and A\/P.<\/li>\n<li>Discrepancies may occur between the invoice issuance amount and the accounting Sales.<\/li>\n<\/ul>\n<\/div>\n<p><script type=\"application\/ld+json\" id=\"wprestapi-ai-jsonld\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"BlogPosting\",\"@id\":\"https:\/\/bahtera.jp\/en\/advanced-down-payment\/#article\",\"headline\":\"Accounting Treatment of Advances and Deposits in Indonesia\",\"description\":\"Advances from customers are processed under the Down Payment account when the invoice is issued. Under the Percentage of Completion Basis, transfers to\u2026\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bahtera.jp\/en\/advanced-down-payment\/\"},\"inLanguage\":\"en\",\"datePublished\":\"2015-10-24T09:12:27\",\"dateModified\":\"2025-03-20T13:44:43\",\"author\":{\"@type\":\"Person\",\"name\":\"yamazou\"}},{\"@type\":\"ItemList\",\"@id\":\"https:\/\/bahtera.jp\/en\/advanced-down-payment\/#key-takeaways\",\"name\":\"What this article covers\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Advances from customers are processed under the Down Payment account when the invoice is issued.\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Under the Percentage of Completion Basis, transfers to Sales are made based on receipt certificates, while the Completion Basis uses different journal entries.\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Advanced Payment to suppliers is made without an invoice and managed in the general ledger (G\/L).\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Offset processing is performed when offsetting advance payments and A\/P.\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"Discrepancies may occur between the invoice issuance amount and the accounting Sales.\"}]}]}<\/script><\/p>\n<h2>Deposit and Down Payment<\/h2>\n<p>In Indonesia, when contracting for an apartment or purchasing a car, a contract fee (Tanda Jadi) is required. This is akin to a deposit (Deposit) requested before checking into a hotel, paid via credit card or cash, and abbreviated as DP. In accounting terms, DP as a deposit for service purchases in Indonesia corresponds to an Advanced Payment, and from the service provider&#8217;s perspective, it is a Down Payment. &#8216;Down&#8217; implies reducing liability from the purchaser&#8217;s viewpoint, but in the service provider&#8217;s accounting, it is a liability to the customer, and the advance payment to the service provider is considered a receivable.<\/p>\n<h2>Receiving Down Payment from Customers<\/h2>\n<p>Advances from customers are processed under the Down Payment account when the invoice is issued, and transferred to Sales upon receipt of the Surah Terima Berita Acara (receipt certificate) from the customer. The journal entry methods differ between the Completion Basis and the Percentage of Completion Basis.<\/p>\n<ol>\n<li>An invoice for an advance of 100, which is 50% of the order price, is issued. A receivable (A\/R) arises against the customer, and the Down Payment is recorded in the credit account keyed to the transaction type of advance.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) A\/R 100 (Credit) Down Payment 100<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<li>A receipt certificate for 25% completion is received from the customer. Under the Percentage of Completion Basis, the following journal entry is made.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) Down Payment 50 (Credit) Sales 50<\/li>\n<\/ul>\n<\/div>\n<p>Under the Completion Basis, no journal entry is made.<\/p>\n<div class=\"graybox\">\n<ul>\n<li>No journal entry<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<li>A receipt certificate for 50% completion is received from the customer. Under the Percentage of Completion Basis, the following journal entry is made.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) Down Payment 50 (Credit) Sales 50<\/li>\n<\/ul>\n<\/div>\n<p>Under the Completion Basis, the following journal entry is made.<\/p>\n<div class=\"graybox\">\n<ul>\n<li>(Debit) Down Payment 100 (Credit) Sales 100<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<li>A receipt certificate for 100% completion is received from the customer. The same journal entry is made for both the Percentage of Completion Basis and the Completion Basis.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) A\/R 100 (Credit) Sales 100<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<\/ol>\n<p>Since advances are recorded as Down Payment when the invoice is issued and transferred to Sales upon completion of work, discrepancies occur between the invoice issuance amount (A\/R recorded amount) and the accounting Sales for the relevant month.<\/p>\n<h2>Payment of Advanced Payment to Suppliers<\/h2>\n<p>Payment of Advanced Payment to suppliers generally results in a reverse pattern of journal entries compared to Down Payment. Money is transferred in advance without an invoice, and when the service is fully received, a consolidated invoice is received, resulting in no A\/P. Therefore, it is managed in the general ledger (G\/L) in the accounting system.<\/p>\n<ol>\n<li>An advance payment of 100 is made to the supplier. Since no invoice is received and no liability arises, Advanced Payment is recorded from the G\/L.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) Advanced Payment 100 (Credit) Bank 100<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<li>A\/P is recorded upon receipt of the invoice. A\/P is recorded upon receipt of the full invoice amount, including the advance.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) Service expense 500 (Credit) A\/P 500<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<li>An offset process is performed. The advance payment and A\/P are offset.\n<div class=\"graybox\">\n<ul>\n<li>(Debit) A\/P 100 (Credit) Advanced Payment 100<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<\/ol>\n<h2>Frequently Asked Questions | Accounting Treatment in Indonesia<\/h2>\n<p>Based on the content of this article, frequently asked questions are briefly organized.<\/p>\n<h3>How is the accounting treatment of advances in Indonesia?<\/h3>\n<p>In Indonesia, advances from customers are processed under the Down Payment account when the invoice is issued. They are transferred to Sales upon receipt of the receipt certificate from the customer. This can lead to discrepancies between the invoice issuance amount and the accounting Sales.<\/p>\n<h3>What are the differences in journal entries between the Percentage of Completion Basis and the Completion Basis?<\/h3>\n<p>Under the Percentage of Completion Basis, journal entries are made to transfer Down Payment to Sales each time a receipt certificate is received. Under the Completion Basis, journal entries are only made upon 100% completion, with no entries made until then.<\/p>\n<h3>How is Advanced Payment to suppliers processed?<\/h3>\n<p>Advanced Payment to suppliers is made without an invoice, and when the service is fully received, a consolidated invoice is received. It is managed in the general ledger (G\/L). A\/P is recorded upon invoice receipt, and an offset process is performed to offset the advance payment and A\/P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Indonesia, advances from customers are processed under the Down Payment account when the invoice is issued. Discrepancies may occur between the invoice\u2026<\/p>\n","protected":false},"author":2,"featured_media":104705,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[683],"tags":[],"class_list":["post-57131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indonesia-accounting-tax-rule"],"_links":{"self":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts\/57131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/comments?post=57131"}],"version-history":[{"count":1,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts\/57131\/revisions"}],"predecessor-version":[{"id":103888,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts\/57131\/revisions\/103888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/media\/104705"}],"wp:attachment":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/media?parent=57131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/categories?post=57131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/tags?post=57131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}