Understanding Deposits and Amount Due

What is a Deposit?

A deposit is money a customer pays upfront when they accept a quote - before work starts. It's a partial payment that gets deducted from the final invoice.

Common deposit amounts:

• 10% of quote total
• 20-30% for large jobs
• 50% for custom/special order work
• Fixed amount (e.g., $500 booking fee)

Deposits secure the job, cover initial costs, and show customer commitment.

How Deposits Work with Invoices

When you create an invoice for a job that has a deposit, the deposit is automatically deducted from what the customer owes. For example, if a quote was for $10,000 and the customer paid a $2,000 deposit (20%), then when you complete the work and create the invoice, it shows the $10,000 total with the $2,000 deposit automatically deducted. The customer only pays the remaining $8,000 balance.

[IMAGE PLACEHOLDER: Invoice showing deposit deduction section]

Where Deposits Come From

Deposits are recorded when:

1. Customer Accepts Quote Online

• Customer views quote
• Clicks "Accept & Pay Deposit"
• Enters card details
• Pays deposit via Stripe
• Deposit recorded automatically

2. You Record Manual Deposit

• Customer pays cash/bank transfer for deposit
• You go to the quote
• Click "Record Payment"
• Enter deposit amount
• Mark as "Deposit"
• Deposit recorded manually

Once recorded, the deposit is linked to the quote.

Automatic Deposit Deduction

When creating a job invoice:

1. You select which quotes to include
2. System checks for deposits on those quotes
3. Adds up all deposits
4. Deducts total from invoice

Example with multiple quotes:

• Quote A: $5,000 (deposit: $1,000)
• Quote B: $3,000 (deposit: $500)
• Invoice for both quotes: $8,000 total
• Total deposits: $1,500
• Amount Due: $6,500

You don't calculate it - the system does it automatically.

[IMAGE PLACEHOLDER: Invoice with multiple quotes showing combined deposit deduction]

The Invoice Breakdown

On every job invoice, you'll see:

Subtotal:          $9,090.91
Tax (10% GST):     $909.09
Total:             $10,000.00
Deposit Applied:   -$2,000.00
---------------------------------
Amount Due:        $8,000.00

Subtotal: Sum of all line items before tax
Tax: GST/sales tax added
Total: Full invoice value
Deposit Applied: What customer already paid
Amount Due: What customer still owes

The deposit appears as a credit on the invoice.

When Deposits Aren't Deducted

Standalone invoices (not linked to a job):

• No deposit deduction
• Standalone invoices aren't connected to quotes
• Customer pays full amount

Job invoices with no linked quotes:

• If you don't link quotes when creating the invoice
• No deposits to deduct
• Customer pays full amount

Pro tip: Always link the quotes when creating a job invoice if there were deposits. Otherwise you're asking customers to pay twice.

Multiple Invoices and Deposits

Deposit only deducts once - from the first invoice.

Example:

• Job has $2,000 deposit
• Invoice #1234 for $10,000 → Deposit deducted → Due: $8,000
• Invoice #1234-2 for $2,000 → No deposit deduction → Due: $2,000

The deposit doesn't apply to subsequent invoices. It's already been accounted for.

Checking Deposit Status

On the Quote

• Go to the quote detail page
• Look for "Payments" or "Deposit" section
• Shows amount paid and payment method

On the Invoice

• Open the invoice detail page
• Deposit deduction shown in totals section
• Displays which quotes the deposit came from

On the Job

• Job detail page → Invoices tab
• Each invoice shows Amount Due (after deposit)

[IMAGE PLACEHOLDER: Job page showing deposit information]

Deposit vs Regular Payment

Deposit (on quote):

• Paid before work starts
• Applies to future invoice
• One-time upfront payment
• Deducted automatically

Regular Payment (on invoice):

• Paid after invoice sent
• Applies to that specific invoice
• Can be partial or full
• Records against Amount Due

Don't confuse the two - they're tracked separately.

Amount Due Calculation

The system calculates Amount Due like this:

Amount Due = Invoice Total - Deposit Deduction - Payments Received

Example:

• Invoice Total: $10,000
• Deposit Deduction: $2,000
• Payments Received: $3,000
• Amount Due: $5,000

As customers make payments, Amount Due decreases automatically.

Over-Deposits (Rare)

Sometimes the deposit is more than the final invoice:

Example:

• Customer paid $3,000 deposit
• Final invoice only $2,500
• Customer overpaid by $500

What happens:

• Invoice shows $0 Amount Due
• Status: Paid
• You owe customer $500 refund or credit

Handle refunds manually (via Stripe or cash), then record as negative payment if needed.

No Deposit Jobs

Not all jobs have deposits:

Common no-deposit scenarios:

• Small jobs under $1,000
• Repeat customers with good payment history
• Emergency/urgent work
• Service/maintenance contracts

For these jobs:

• Invoice shows full amount
• No deposit deduction section
• Customer pays entire invoice

Customer View of Deposits

When customers see their invoice:

They see:

• Total work value
• Deposit already paid (shown as credit)
• Balance remaining

They understand:

• "I paid $2,000 upfront, now I owe $8,000"
• Clear breakdown prevents confusion
• No surprise charges

Professional invoices build trust.

[IMAGE PLACEHOLDER: Customer view of invoice email showing deposit]

Common Deposit Scenarios

Scenario 1: Standard Deposit

1. Customer accepts $10,000 quote, pays $2,000 deposit
2. You complete work
3. Create invoice linking the quote
4. Deposit deducted automatically → Amount Due: $8,000
5. Customer pays $8,000
6. Job complete

Scenario 2: Large Job - Multiple Quotes

1. Customer accepts 3 quotes:
   • Quote A: $5,000 (deposit: $1,000)
   • Quote B: $3,000 (deposit: $600)
   • Quote C: $2,000 (deposit: $400)
2. You create one invoice for all quotes
3. Total deposits: $2,000 deducted
4. Amount Due calculated correctly

Scenario 3: Progress Billing

1. Job worth $20,000, deposit $4,000
2. Invoice #1 for first phase: $10,000 → Deposit deducted → Due: $6,000
3. Customer pays $6,000
4. Invoice #2 for second phase: $10,000 → No deposit (already used) → Due: $10,000
5. Customer pays $10,000

Total collected: $4,000 (deposit) + $6,000 + $10,000 = $20,000 ✓

Troubleshooting

Problem: Deposit not showing on invoice

• Check if quotes are linked to invoice
• Verify deposit was recorded on the quote
• Confirm payment status is "Succeeded"

Problem: Wrong deposit amount

• Check which quotes are linked
• Deposit = sum of ALL linked quote deposits
• Unlink incorrect quotes if needed

Problem: Customer says they paid deposit but it's not showing

• Check payment records on quote
• Might be recorded as regular payment instead of deposit
• Contact support to reclassify if needed

Best Practices

Always record deposits When customers pay upfront (even cash), record it immediately on the quote. Don't rely on memory.

Link quotes when invoicing Don't create "blank" job invoices and manually enter items if there were quotes. Link the quotes so deposits auto-deduct.

Explain deposits to customers When taking deposits, explain: "You'll see this deducted from your final invoice."

Track deposit payments Use Stripe payments when possible - automatic tracking with no manual entry needed.

Don't double-charge If deposit was paid, ensure it shows on the invoice. Asking for money twice damages trust.

Common Questions

Can I manually adjust the deposit deduction? No. It's calculated automatically from quote payments. If it's wrong, fix the payment records on the quote.

What if I don't want to deduct the deposit? Create the invoice without linking the quotes. The deposit stays on the quote as unused credit.

Can deposits apply to standalone invoices? No. Deposits are tied to quotes, and standalone invoices aren't linked to quotes or jobs.

What if the customer cancels after paying deposit? Handle refunds per your cancellation policy. Process refund via Stripe (for card payments) or manually. Update payment record as "Refunded".

Do deposits affect my revenue reporting? Deposits are revenue when received. Invoice deductions are just accounting - moving money from "deposit" bucket to "job revenue" bucket.

Related Articles

• Creating Invoices - How deposits are handled during invoice creation
• Sending Invoices - Customer sees deposit deduction
• Creating Your First Quote - Setting up deposits on quotes
• Understanding Invoice Numbers - How invoicing works overall