Deposit on Invoice

ASPSASPS Member Posts: 8

Is there a way that you can add a slot for the deposit amount on the invoice after total?

Comments

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi @ASPS.

    Although adding a new field for deposit amount under the invoice isn't possible, there's a few workarounds I could suggest depending on your needs.

    Can you tell me a little more about your business and why that field couldn't be treated as an item on the invoice?

  • SCBBSCBB Member Posts: 1

    Hello ASPS did you find a resolve to your question?

  • ASPSASPS Member Posts: 8

    Hello!

    Unfortunately I have not found a resolve. What I’m currently doing is letting each client know that a minimum of 50% deposit is due before any service is rendered. I have added this notification in my footer and message.

    -
    Alexia, thank you so much for your reply, but the reason I can not add the deposit amount as an item, is because it should not affect the overall total on the invoice. This way, once the deposit is collected, I can note that partial payment was made.

    Hopefully Wave Apps can include a deposit slot under total one day.

    edited August 7, 2018
  • Jacqui_EN_2018Jacqui_EN_2018 Member Posts: 4

    Can you create the invoice then make the deposit as a "payment" against the invoice? (This should reflect the total invoice amount in your sales, the deposit being applied, and show the remaining balance on the invoice until paid in full.)

    edited August 7, 2018
  • ASPSASPS Member Posts: 8

    Hi Jacqui,

    Yes, of course. That is what I’m doing after the deposit has been paid.

    I’m more interested in a slot that shows the deposit amounted needed to be paid when the invoice is sent out and before payment, therefore not affecting the overall total just yet. Like I said, I work around it now by adding it in the footer and message prior to sending the invoice out. So I’m ok for now. Thanks for your reply in any event.

    edited August 7, 2018
  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @ASPS.

    That's really the only way to handle a situation like yours for the time being. I'd love to hear a bit more about the field you work in and the kind of transaction you have to handle. I'd like to forward this suggestion to our team and having more real-world context will help us understand how a feature like this could make the lives of our users easier.

    Can you tell me about the kind of business you run and how you handle deposits?

  • ASPSASPS Member Posts: 8

    Hi @Alexia,

    I run a film production and marketing company. At the moment, I let each client know that a minimum of 50% deposit is due before any service is rendered. I have added this notification in my footer and message. Once a deposit is made, I use the partial payment feature, and send a receipt.

  • RahimRahim Administrator Posts: 90 admin

    @ASPS Do you typically create quotes or proposals before doing the work where you'd need to generate an invoice and request a deposit? I'd love to hear more about where in your sales process the deposit lies and where that sits in relation to the proposal to Invoice for work completed flow.

    In addition to that, when you take a deposit, do you realize that income right away, or do you realize the income when the work is completed for your accounting purposes?

  • ASPSASPS Member Posts: 8

    Hi @Rahim,

    My business is service based, and deposits are required before any service is rendered. Once an estimate is approved, an invoice is sent and the deposit received. The income from the deposit is realized before the work is completed.

    While I thank you for your inquiry, I'll continue as I have been with the waveapps. (Please see message thread for more details of why I need a deposit slot and what I have been doing as a workaround)

    edited October 3, 2018
  • mikaelamikaela Member Posts: 3

    This is a huge problem for me as well. I'm a web developer/designer which is also a service based industry. I always require a 50% deposit, and right now I am having to send two different invoices and try to tie them together, for both me and my client, by writing in the description.

    For the first invoice, I reference the estimate number and state the project total in the description. Then add a line item that says 50% deposit with just the deposit amount due. For the second one, I create a line item with the total project amount due and in the description write in the estimate number and the invoice number of the deposit payment, create another line item showing the deposit payment applied and reference the deposit invoice in the description, and then they pay the remaining amount due. It makes for very messy, complicated, fussy billing. And when I go back through my transactions it's a huge pain in the butt to try and tie everything back together to make sure the correct total amount was actually paid.

    Like @ASPS said, the second email isn't such a big deal, I can just add the deposit payment, but the first one is a pain and I always have to include an emailed explanation to my clients. But I really wish it would just connect the invoice with the deposit payment to the second invoice, roll it together and give them the amount left due. Because I still have to go back and read the description of all of my invoices to find the right one to reference for their deposit line item in the second email..

    edited October 4, 2018
  • RahimRahim Administrator Posts: 90 admin

    Thank you both @ASPS and @mikaela for the feedback above. This is an area we can do better in so understanding your workflows is helpful for us to see how we can make this easier for you. If there's anything else that you think would be helpful in this workflow for you, please let me know! As we dig more into this, I will keep your feedback handy and may contact you further for more information.

  • patberrypatberry Member Posts: 2

    I too am wrangling a production company. I sent estimate for $100,000. Once accepted, I converted to an invoice, and added a line item of -50,000 to arrive at the $50,000 deposit amount. I am positive this was the worst possible way of doing this.

  • SPS_JohnSPS_John Member Posts: 2

    I too am taking deposits. It's a clumsy process to track these on the invoices, and it would be much better to have a way of taking a deposit in and posting it to the invoice, and when the work is completed, applying that deposit as a payment to the invoice as a receipt. Perhaps using the Estimate (which I would love a Work Order) that you can apply the deposit to, then when it's ready to invoice, process the invoice with the deposit posting to receipts. AND having the deposits posting to a current liability account for reporting on the financials. I think I have the right process in mind.
    So this is kind of what I see: Estimate>Work order>Deposit (posting to liability)>Work Completed - Process Invoice>Deposit applied (changed from liability to asset)>Invoice with balance due>Payment on balance>Invoice Paid and closed.
    Maybe someone can check me on this? I think I have the idea right.
    Thanks! JD

  • SPS_JohnSPS_John Member Posts: 2

    @patberry said:
    I too am wrangling a production company. I sent estimate for $100,000. Once accepted, I converted to an invoice, and added a line item of -50,000 to arrive at the $50,000 deposit amount. I am positive this was the worst possible way of doing this.

    I tried that and didn't like how it looked on my books. So I backed out of it. Wasn't sure if it was the way to go. Of course, my amounts weren't as big of an impact as yours, as mine was in the hundreds. ;)

  • theprintbazaartheprintbazaar Member Posts: 2

    I'm in the same boat as well, unfortunately. Sending 2 invoices is a clunky workaround. The ideal workflow for me, and judging by the feedback here a lot of other people, would be:

    -Estimate created, the customer agrees to that estimate
    - Estimate is converted to an invoice where the total is shown, but the invoice is requesting ½ of the total as a deposit
    - Deposit is paid and noted in the invoice
    - When work is complete, the invoice can be re-sent for the final balance (which could still be adjusted after the deposit.. i.e. they decide to add more t-shirts to the total etc.)

    This would make my life SO much easier!

  • RahimRahim Administrator Posts: 90 admin

    @SPS_John Thanks for that! Your flow is a valid one!

    There are two different workflows that we need to consider and you mentioned one and the others on the thread have mentioned the other. The differentiation lies in when the income is realized. There are many valid cases for it posting to liability accounts tied to a customer (for retainer based work), or for it being realized right away (using funds to begin work immediately).

  • boy3696boy3696 Member Posts: 1

    Same boat here, except, my payment terms has something like 50% deposit, then 30% half way through, then final invoice of 20% remaining. Sometimes I have 4 payment periods(schedules) depending on the total invoice amount.

  • patberrypatberry Member Posts: 2

    @SPS_John said:

    @patberry said:
    I too am wrangling a production company. I sent estimate for $100,000. Once accepted, I converted to an invoice, and added a line item of -50,000 to arrive at the $50,000 deposit amount. I am positive this was the worst possible way of doing this.

    I tried that and didn't like how it looked on my books. So I backed out of it. Wasn't sure if it was the way to go. Of course, my amounts weren't as big of an impact as yours, as mine was in the hundreds. ;)

    Same here. After I sent, I recreated the invoice for the full amount and did the partial payment. Just a bookkeeping exercise.

  • FiestaMedalsFiestaMedals Member Posts: 1

    I would like to see a deposit option for an invoice as well.
    I manufacture custom items that take approximately four weeks to complete.
    I ask for a 50% deposit to begin production, then the balance is due when the order is completed.
    It's not feasible for me to send two invoices as I want my customers to see the total quantity ordered and total amount of the invoice all on one form. I would just like the option of having my customer to be able to make a partial payment (deposit) toward that invoice then be able to send that same invoice with the balance due. Preferably I would realize the income when the job is complete and paid in full.
    What threprintbazaar mentioned below would be perfect for my needs.

    @theprintbazaar said:
    I'm in the same boat as well, unfortunately. Sending 2 invoices is a clunky workaround. The ideal workflow for me, and judging by the feedback here a lot of other people, would be:

    -Estimate created, the customer agrees to that estimate
    - Estimate is converted to an invoice where the total is shown, but the invoice is requesting ½ of the total as a deposit
    - Deposit is paid and noted in the invoice
    - When work is complete, the invoice can be re-sent for the final balance (which could still be adjusted after the deposit.. i.e. they decide to add more t-shirts to the total etc.)

    This would make my life SO much easier!

  • jackojacko Member Posts: 1

    I too need a function where i can split the same invoice into two separate payments. 50% to begin the project, and 50% when the job is finished. C'mon, Wave!

  • TylerTyler Administrator Posts: 103 admin

    In the meantime @jacko could you send an invoice with payment due terms as the end of project but a deposit item on the Invoice with a due date different from the invoice's payment terms as the description? Adding a note may also provide more clarity. I know this isn't the most elegant solution but it would at least keep it on one invoice.

  • MelodyVetoMelodyVeto Member Posts: 0

    We could really use a deposit amount field at the bottom of the invoice, after the Total amount since we too ask for a 50% deposit before any work is done. It's caused much confusion with AP departments of our larger clients because they don't always read the footer, or invoices are forwarded within companies without original attached email instructions. I see that Freshbooks and other invoice apps have this field, however, I prefer to stay with Wave. Please consider adding this option:) thanks

  • DonovanLeowDonovanLeow Member Posts: 1

    HI,

    Just to add. I too run a custom business for shoes.

    We accept a standard deposit of $150 and the balance would be upon completion and collection of our customer's shoes.

    When we invoice the customers using wave, it goes straight to income/revenue but by accounting terms, it should not be that way. This is because the revenue can only be recognized upon delivery of the product.

    How do i still invoice my customers without Wave realizing the invoice as revenue and leaves an option for me to convert it to revenue upon delivery of the product.

    Also, how do i record the deposit as "customer prepayment"as a current liability and then reversing it to revenue upon delivery.

    Any help would be much appreciated!

  • Ryan_WRyan_W Administrator Posts: 374 admin

    Hey @DonovanLeow,

    Although it doesn't necessarily record the pre-payment as a liability, this guide will show you how to account for pre-payments on your invoices. Essentially, instead of moving it into (and then out of) a liability account, you'll set up a custom holding account for the payment. Hope that helps!

  • RaedioactivemanRaedioactiveman Member Posts: 1

    Hola,

    DonovanLeow's issue is very common among many business and the solution is as common as well.

    By any accounting standard, WaveApps recommendation as noted by Ryan_W in "the guide" is grossly incorrect. Apparently, it's not accountants administrating this site.

  • ryanwilsonperkinryanwilsonperkin Administrator Posts: 17 admin

    Thanks for your feedback @Raedioactiveman, we'll continue to investigate different features that we could provide here to better suit this workflow.

  • ASPSASPS Member Posts: 8

    So happy to see that I am not alone. Hopefully this feature can be added someday soon, seeing that OCR is being taken away :'( :neutral:

    edited January 22, 2019
  • PeternKristinePeternKristine Member Posts: 1

    Just signed up today. We sell travel 2-3 years out. We have varying scheduled payments for each client. Without this feature, these invoices will be confusing. Maybe I'll check back with Wave when they have this figured out.

  • SpiezzSpiezz Member Posts: 1

    @Ryan_W The link in your response is not active. I also have this issue.

  • Siobhan_HitchmoughSiobhan_Hitchmough Administrator Posts: 9 admin

    Hi everyone, thanks so much for all the feedback that you've provided so far.

    @ASPS in case you missed it: we've updated the plan for OCR, based in large part on the feedback we received from the community. Please have a look at the updated plan by clicking here. In the meantime, thanks for sharing your thoughts!

    @PeternKristine It helps to know that this is so important to your business, so thanks for posting.

    Hi @Spiezz, sorry that you were having trouble with the link Ryan shared above. It should lead you to the article posted here: https://support.waveapps.com/hc/en-us/articles/208622916-How-to-handle-invoice-deposits-or-pre-payments so please let me know if you're still unable to see it. The article outlines how we suggest handling pre-payments in Wave right now, if that's something you wanted to try. For deposits, there have been some good suggested workarounds shared here. One option is to create a service item for the deposit on the invoice (and put the due date for that deposit into the description). Another alternative mentioned was putting the note about the deposit amount and its due date into the invoice notes. Both options might work depending on your situation.

    We really appreciate the continued discussion here and the details you've all offered above. Knowing how you invoice your customers helps our team understand the impact that a process like this has on your business. Thank you all again for your honesty about why this is challenging and for continuing to share your thoughts and experience with us.

    edited February 12, 2019
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