(1) When the enterprise prepays the payment to the supplier according to the provisions of the purchase contract,

Debit: advance payment

Loans: bank deposits

(2) When the enterprise receives the purchased materials, it shall, according to the amount that should be included in the cost of the purchased materials,

Borrow: material procurement

raw material

commodity stocks

Taxes payable-VAT payable (input tax), etc.

Credit: advance payment

When advance payment

Debit: advance payment

Loans: bank deposits

When advance payment > purchased goods, the remaining currency is recovered.

Debit: bank deposit

Credit: advance payment