---
title: "Advance Transaction"
description: "How to record, track, and adjust advance payments in NICE HMS — patient advances, TPA advances, and settlement against final bills."
date: 2026-07-19
lastModified: 2026-07-19
category: "billing"
author: "Dr. Umesh Bilagi"
beta: true
---

## Overview

Advance Transactions track payments received before a final bill is generated. Common in IPD admissions — the patient or TPA pays an advance, which is later adjusted against the final discharge bill.

## Recording an Advance

1. Go to **Billing > Advance Transaction**.
2. Click **New Advance**.
3. Fill in:

| Field | Description |
|-------|------------|
| **Patient** | Select the patient |
| **Encounter** | Link to an IPD admission or OPD registration |
| **Amount** | Advance amount received |
| **Payment Mode** | Cash, UPI, Card, Bank Transfer, TPA/Insurance |
| **Reference** | Optional — cheque number, UPI transaction ID |
| **Date** | Date of advance receipt |

4. Click **Submit**.

The advance is now available for adjustment against that patient's bills.

## Adjusting Advance Against a Bill

When the final bill is generated:

1. Open the bill from **Billing > View Bills**.
2. Click **Settle** or **Adjust Advance**.
3. The system shows available advances for this patient.
4. Select the advance(s) to apply.
5. Enter the amount to adjust (can be partial or full).
6. Submit.

The bill total adjusts:
- **Bill Amount:** ₹10,000
- **Advance Adjusted:** -₹5,000
- **Balance Due:** ₹5,000

## Advance Refunds

If the advance exceeds the final bill:
- The excess can be refunded to the patient.
- Refunds are recorded as a negative advance transaction (outgoing).
- A receipt is generated for the patient.

## Advance Reports

View all advances from **Reports > Advance Report**:
- Advances received (date-wise, patient-wise)
- Advances adjusted (which bills they were applied to)
- Outstanding advances (received but not yet adjusted)
- Advance refunds

## Best Practices

- **Always record advances immediately.** Don't wait until discharge — it keeps the financial picture accurate.
- **Link advances to encounters.** This ensures the advance is available for adjustment when the bill is generated.
- **Reconcile advances daily.** Compare the advance register with cash/physical receipts.

## FAQ

**Q: Can one advance be split across multiple bills?**
A: Yes. Adjust partial amounts from an advance to different bills as needed.

**Q: What happens to unadjusted advances at discharge?**
A: They are shown as a credit balance. Refund the excess to the patient or transfer to a deposit account.

**Q: Can advances be received via UPI?**
A: Yes. Record the UPI transaction reference number when creating the advance.