Advance :
From time to time advisers might ask to be paid ahead of a scheduled pay run. They may also request an additional amount based on a commission/fee payment that has not yet been processed. This is called an Advance.
Reserve :
When an AFSL needs to retain an amount to cover a future licensing related fee, this is called a Reserve. A reserve can also be used to retain an amount from an adviser/practice to cover a future payment or potential clawback.