Down Payments

Down payments help improve cash flow and reduce financial risk on large projects. DrillerDB provides flexible down payment configuration and tracking to manage deposits from proposal through final payment.

Down Payment Configuration

Set up down payment requirements at multiple levels:

• Company-Wide Default - Apply a standard percentage to all projects
• Per-Customer Settings - Override defaults for specific customers
• Per-Project Override - Set custom amounts for individual proposals

Common down payment structures include flat percentages (25%, 50%), fixed dollar amounts, or calculated amounts based on material costs. Choose the structure that best fits your business model.

Collecting Down Payments

Request down payments during the proposal process:

1. Create a proposal with down payment enabled
2. Set the down payment amount or percentage
3. Send the proposal to the customer for approval
4. Upon approval, an invoice is automatically generated for the down payment
5. Customer pays the down payment before work begins
6. Remaining balance is invoiced upon project completion

This workflow ensures you receive payment before mobilizing equipment and crew.

Down Payment Invoices

Down payment invoices are separate from final invoices:

• Clearly labeled as "Down Payment" or "Deposit"
• Due immediately upon proposal approval
• Tracked separately in payment history
• Referenced on final invoice as credit applied

The final invoice shows the total project cost, down payment credit, and remaining balance due. This transparency helps customers understand the payment breakdown.

Down Payment Application

When creating the final invoice, DrillerDB automatically:

• Calculates the remaining balance after down payment
• Shows down payment as a line item credit
• Updates the amount due to reflect the deposit
• Links the down payment invoice for reference

If multiple partial payments were made, all are applied to reduce the final balance.

Stripe Integration

Down payments can be collected through online payments:

• Send down payment invoice with Stripe payment link
• Customer pays via credit card or ACH
• Payment automatically recorded in DrillerDB
• Project can proceed once down payment clears

Online down payment collection accelerates project start times and reduces delays waiting for checks to arrive.

Down Payment Refunds

If a project is cancelled before work begins, you may need to refund the down payment:

1. Open the down payment invoice
2. Record a refund with the refund amount
3. Process the refund through Stripe or issue a manual refund
4. Update the project status to cancelled

Your refund policy should be clearly stated in proposals and contracts. Some companies retain a portion of the down payment as a cancellation fee.

Accounting Considerations

Down payments have special accounting treatment:

• Initially recorded as a liability (customer deposit)
• Converted to revenue when work is performed
• Applied against accounts receivable on final invoice
• May have different tax treatment in some jurisdictions

If you use QuickBooks integration, down payments sync appropriately as customer deposits and credits. Consult your accountant for specific guidance on down payment accounting.

Down Payment Best Practices

Optimize your down payment strategy:

• Clearly communicate down payment requirements upfront
• Make down payment terms part of standard proposals
• Require down payments for new customers
• Use higher down payments for high-risk projects
• Offer flexible payment plans when appropriate
• Document down payment policies in contracts

Consistent down payment practices protect your cash flow while maintaining positive customer relationships. Most customers expect down payment requirements for construction and service work.