Upfront Deposits

When you receive upfront deposits for services, it is essential to record and manage them properly. This guide outlines the necessary steps to handle upfront deposits efficiently.

Defining a Deposit Invoice Item Type

To process upfront deposits, you first need to create an item specifically designed for recording these transactions.

Steps to Define a Deposit Invoice Item Type:

1. Go to Settings from the left-side menu.
2. Open Invoicing ↗.
3. Click +ADD to create a new invoice item type.
4. Name the item type (e.g., Deposit).
5. Mark the item type as a Deposit.
6. Click Save to store the new item type.

You can now use this item type to record any upfront deposits you receive.

Recording Upfront Deposits

When you receive an upfront deposit from a customer, it is important to document it correctly for accurate financial tracking.

Steps to Record an Upfront Deposit

1. Navigate to Invoices.
   • You can access invoices at the project level (if the deposit is associated with a specific project) or at the client level.
2. Click on +NEW INVOICE.
3. Enter the necessary information, such as the Date.
4. Add an invoice line item for the deposit:
   • Select the Deposit item type.
   • Specify the Amount received as a deposit.
5. Assign the appropriate Status to the invoice (e.g., Draft, Approved).
6. Click Save to record the deposit.

Applying an Upfront Deposit to a Customer’s Invoice

Upfront deposits can be applied to a customer’s invoice by adding them as a specific line item. This effectively reduces the total amount due on the invoice.

Steps to Apply a Deposit to an Invoice

1. Access the invoice where you want to apply the deposit.
2. Click Edit to make changes.
3. Add a new line item specifically for the Deposit.
4. Input the Deposit Amount in the Amount column.
5. Click Save to finalize the changes.

This action directly reduces the invoice’s outstanding balance by the deposit amount.

Managing Deposit Balances

It is crucial to monitor the current balance of all deposits to ensure accurate financial tracking and reporting.

How to View Deposit Balances

1. Navigate to the Invoices section.
   • You can view the list of invoices at the client level or the project level (if the deposit was made for a specific project).
2. Locate and review deposit balances directly within the invoice list.

Reporting Deposit Balances

Deposit balances are available as a metric that can be incorporated into financial reports. This feature provides a comprehensive view of all financial engagements related to deposits, giving users a clear and accurate understanding of their deposit funds at all times.