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Client Deposits for Projects

SouthlandOutdoorSouthlandOutdoor Member Posts: 17

We are a landscaping company and when we send out estimates for jobs, we tell the client that there is a 40% deposit prior to starting services. This is to obtain materials and such. Currently, we have a line item named "Deposit" with the income account "Installation Services".
We create and send an invoice for the customers to pay. And after the completion of said project, the original estimate is converted to an invoice and then a line item "Discount" with income account of "Sales Discounts" is applied for the amount that was previously deposited.
Im just not sure if this is the proper way to handle this or if there is another way to do this and if we need to edit invoices to reflect the proper way handling it.

in Bank Connections

Comments

  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @SouthlandOutdoor! It's actually looking like your currently workflow is great! It accounts for the deposit, the movement of funds, and the reimbursement, which are really the core parts of this process. Great work :)

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