Definition
Advance Payment, commonly referred to as Mobilization Advance, is a percentage of the contract value paid upfront to contractors or suppliers. It provides the necessary initial cash flow to mobilize equipment, setup the site, or purchase raw materials.
Practical Example
A developer awards a ₹1 Crore contract for earthworks. The contract stipulates a 10% Mobilization Advance. The contractor receives ₹10 Lakhs upfront to move excavators to the site and build labor camps. This advance is then recovered proportionally from subsequent Running Account (RA) Bills.
Application in Superwise
Superwise automates the tracking and recovery of Mobilization Advances across RA Bills. When accounts define an advance against a Work Order, the system ensures that consecutive RA Bills deduct the exact prescribed recovery percentage, preventing overpayment errors natively.
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