# Advance Receipts > Advance Receipts means all funds received by or for [Seller] before a specified [Completion Date], intended for goods or services to be provided after **Term:** Advance Receipts **Last updated:** 2026-07-29 ## Definition ## What Advance Receipts Means in a Contract Advance Receipts is a defined term used to capture funds that arrive in a seller's hands before a transaction, project, or agreement formally completes, but which are tied to obligations that will only be fulfilled after that completion point. The concept exists to draw a clean financial line between what belongs to the pre-completion period and what belongs to the post-completion period, particularly when a business is being sold, restructured, or transferred and ongoing customer contracts span the transition date. Without such a clause, ambiguity can arise over who is entitled to keep money that was paid early for future performance. A customer may have paid a deposit or full price for goods that will only ship after the Completion Date, and the definition determines whether that cash stays with the seller, gets handed to the buyer, or is held in a separate account pending performance. This is especially relevant in a