diff --git a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreatePurchAdvLetterCZZ.Report.al b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreatePurchAdvLetterCZZ.Report.al
index f9fd5b66f04..c65abf5a049 100644
--- a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreatePurchAdvLetterCZZ.Report.al
+++ b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreatePurchAdvLetterCZZ.Report.al
@@ -7,6 +7,7 @@ namespace Microsoft.Finance.AdvancePayments;
 using Microsoft.Finance.Currency;
 using Microsoft.Purchases.Document;
 using Microsoft.Purchases.Posting;
+using Microsoft.Purchases.Vendor;
 using System.Utilities;
 
 report 31029 "Create Purch. Adv. Letter CZZ"
@@ -243,8 +244,13 @@ report 31029 "Create Purch. Adv. Letter CZZ"
     end;
 
     procedure SetPurchHeader(var NewPurchaseHeader: Record "Purchase Header")
+    var
+        Vendor: Record Vendor;
     begin
         NewPurchaseHeader.TestField("Document Type", NewPurchaseHeader."Document Type"::Order);
+        Vendor.Get(NewPurchaseHeader."Pay-to Vendor No.");
+        Vendor.CheckBlockedVendOnAdvanceLettersCZZ(false);
+
         PurchaseHeader := NewPurchaseHeader;
         PurchPost.GetPurchLines(PurchaseHeader, TempPurchaseLine, 0);
         TempPurchaseLine.CalcSums("Amount Including VAT");
diff --git a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreateSalesAdvLetterCZZ.Report.al b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreateSalesAdvLetterCZZ.Report.al
index fb6557eb3ec..f8cfa2bce9a 100644
--- a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreateSalesAdvLetterCZZ.Report.al
+++ b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/Reports/CreateSalesAdvLetterCZZ.Report.al
@@ -7,6 +7,7 @@ namespace Microsoft.Finance.AdvancePayments;
 using Microsoft.Finance.Currency;
 using Microsoft.Projects.Project.Job;
 using Microsoft.Projects.Project.Planning;
+using Microsoft.Sales.Customer;
 using Microsoft.Sales.Document;
 using Microsoft.Sales.Posting;
 using System.Utilities;
@@ -405,8 +406,13 @@ report 31012 "Create Sales Adv. Letter CZZ"
     end;
 
     procedure SetSalesHeader(var NewSalesHeader: Record "Sales Header")
+    var
+        Customer: Record Customer;
     begin
         NewSalesHeader.TestField("Document Type", NewSalesHeader."Document Type"::Order);
+        Customer.Get(NewSalesHeader."Bill-to Customer No.");
+        Customer.CheckBlockedCustOnAdvanceLettersCZZ(false);
+
         SourceSalesHeader := NewSalesHeader;
         SalesPost.GetSalesLines(SourceSalesHeader, TempSalesLine, 0);
         TempSalesLine.CalcSums("Amount Including VAT");
diff --git a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/TableExtensions/CustomerCZZ.TableExt.al b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/TableExtensions/CustomerCZZ.TableExt.al
index 25da6101a9b..9e05eb00163 100644
--- a/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/TableExtensions/CustomerCZZ.TableExt.al
+++ b/src/Apps/CZ/AdvancePaymentsLocalization/app/Src/TableExtensions/CustomerCZZ.TableExt.al
@@ -26,7 +26,7 @@ tableextension 31045 "Customer CZZ" extends Customer
         if "Privacy Blocked" then
             CustPrivacyBlockedErrorMessage(Rec, Transaction);
 
-        if Blocked <> Blocked::" " then
+        if Blocked in [Blocked::All, Blocked::Invoice] then
             CustBlockedErrorMessage(Rec, Transaction);
     end;
 }
diff --git a/src/Apps/CZ/AdvancePaymentsLocalization/test/Src/SalesAdvancePaymentsCZZ.Codeunit.al b/src/Apps/CZ/AdvancePaymentsLocalization/test/Src/SalesAdvancePaymentsCZZ.Codeunit.al
index b33009a6dfe..dd79d99df79 100644
--- a/src/Apps/CZ/AdvancePaymentsLocalization/test/Src/SalesAdvancePaymentsCZZ.Codeunit.al
+++ b/src/Apps/CZ/AdvancePaymentsLocalization/test/Src/SalesAdvancePaymentsCZZ.Codeunit.al
@@ -2835,9 +2835,14 @@ codeunit 148109 "Sales Advance Payments CZZ"
         CreateBlockedCustomer(Customer, CustomerBlocked, PrivacyBlocked);
 
         // [WHEN] Create sales advance letter with blocked customer
-        asserterror LibrarySalesAdvancesCZZ.CreateSalesAdvLetterHeader(SalesAdvLetterHeaderCZZ, AdvanceLetterTemplateCZZ.Code, Customer."No.", '');
+        if (CustomerBlocked = CustomerBlocked::Ship) and not PrivacyBlocked then
+            LibrarySalesAdvancesCZZ.CreateSalesAdvLetterHeader(SalesAdvLetterHeaderCZZ, AdvanceLetterTemplateCZZ.Code, Customer."No.", '')
+        else
+            asserterror LibrarySalesAdvancesCZZ.CreateSalesAdvLetterHeader(SalesAdvLetterHeaderCZZ, AdvanceLetterTemplateCZZ.Code, Customer."No.", '');
 
-        // [THEN] Error will occur
+        // [THEN] Error will occur when customer is blocked except when shipping is allowed
+        if (CustomerBlocked = CustomerBlocked::Ship) and not PrivacyBlocked then
+            exit;
         if PrivacyBlocked then
             Assert.ExpectedError(StrSubstNo(PrivacyBlockedCustomerErr, 'create', Customer."No."))
         else
@@ -2875,9 +2880,14 @@ codeunit 148109 "Sales Advance Payments CZZ"
         Customer.Modify(true);
 
         // [WHEN] Post sales advance payment
-        asserterror LibrarySalesAdvancesCZZ.PostSalesAdvancePayment(GenJournalLine);
+        if (CustomerBlocked = CustomerBlocked::Ship) and not PrivacyBlocked then
+            LibrarySalesAdvancesCZZ.PostSalesAdvancePayment(GenJournalLine)
+        else
+            asserterror LibrarySalesAdvancesCZZ.PostSalesAdvancePayment(GenJournalLine);
 
-        // [THEN] Error will occur
+        // [THEN] Error will occur when customer is blocked except when shipping is allowed
+        if (CustomerBlocked = CustomerBlocked::Ship) and not PrivacyBlocked then
+            exit;
         if PrivacyBlocked then
             Assert.ExpectedError(StrSubstNo(PrivacyBlockedCustomerErr, 'post', Customer."No."))
         else