According to National Accounting Standards, advance payments are classified according to the term of use: long-term advance payments and current advance payments. This classification does not correspond to the European Union directives, which stipulate that advance payments are recognized according to their destination. In this article, we propose the methods of using advance payments according to their destination, especially how to account advance payments for purchases of property, plant and equipment. This article was elaborated by using the comparison method in order to identify the similarities and differences between national accounting regulations and European Union directives, as well as the method of document analysis. As a model, the experience of foreign scholars and the legislation of some countries that have linked their accounting standards to European Union directives has been used.