1 (edited by Technicavolous 03/27/2021 03:38:47 am)

Topic: Invoice for a deposit?

How does one send an invoice for a deposit? Notes on the quotation showing deposit required is not acceptable for a client type that I have.

So far it's been easy to make the quotation, and in the notes show that 50% deposit required. Most of the time the customer gives us deposit payment at the time they accept the quotation. We take 50% deposit on a job, convert it to invoice, allocate the payment for the deposit, then print a receipt and statement showing the deposit and balance due.

We have started business with a company that requires us to invoice for the deposit - what is the correct way to do this? I find several things on the wiki and forum that gets close, but so far I can't figure out how to invoice for the deposit without causing other issues.

Re: Invoice for a deposit?

Have you tried prepayments?

3 (edited by Technicavolous 04/01/2021 08:40:11 pm)

Re: Invoice for a deposit?

Sorry for my delay in reply.

To make it clear, I have no problem with what to do once the payment is received. The issue is how to invoice for a deposit. The post referenced starts the process after an advance payment is received.

I need to be able to invoice for the deposit amount before the job begins.
I can't make a sales order and convert it to an invoice as that assumes the job is complete, and there is yet work that may have to be added to the invoice.
The invoice for deposit has to be for the total of the deposit and nothing else.

The way I handled it this time, I created an item called Deposit for work to be performed, and set it as a tax exempt charge with an editable description. I made a direct invoice for the deposit itself, with a Deposit line each referencing each quotation (there are 3 quotes in this instance) so the total deposit was the bottom line.

It got the invoice to them, but this is not done correctly and makes questions like what if they want to have a receipt for the deposit, how do I apply the payment to the actual work invoice ...

So the process I need is to create a quotation, generate an invoice for the deposit, take the deposit, generate a receipt for the deposit, start the job, do the job, adjust the parts and labor for the actual amount, close the work order and invoice the balance.

I can handle all of it except to generate an invoice for the deposit.

Thanks in advance, I hope I was more clear on my need and capability.

Re: Invoice for a deposit?

Split the order into two parts - one for the work that the deposit tentatively pays for and another that can be for extra adjustments to the original order as a new order even it is just an addendum and then receive payment for that when done.

Re: Invoice for a deposit?

I think my customer may be asking too much. I considered that, but still how to invoice for the deposit.

Re: Invoice for a deposit?

Treat Deposit as a non inventory item and bill it. When final invoice is ready, invoice that and make a Journal Entry for the original Deposit invoice into payment for the final invoice.