Dealing with down payments and draws against it

FrankD

How do you recommend I handle down payments and draws against. I invoiced my customer for the initial $2,500 down payment. Each month they want to track how much the project is at in cost. Do I create a monthly invoice that shows the amount of down payment remaining as a credit and then line items of work done in the month that charges against that down payment? Lets say I did $500 worth of work the first month. Would the invoice show the $2,500 credit and then the $500 charge and show the $2,000 remaining amount of the down payment as a credit? Will that mess up my monthly reconciliations?

AlexL

Hey @Engineer , I'd have to ask you some more questions about your workflow here. Do you know what the final amount is and do you have it all divvied out over certain periods of time, or do you charge them as things go on?

If you know what the total amount is going to cost, you can send them a single invoice with a breakdown of costs and dates in the Notes section. Because you can always make/mark a partial payment to an invoice, this will allow you to keep track of the dates as well as when the money itself is due.