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Down Payments

Step-by-step guide to configuring and collecting deposits

Down Payments

Down payments help improve cash flow and reduce financial risk on large projects. This guide covers configuring deposits, collecting payments, and managing credits.

Quick Start: Collect a Down Payment

  1. Configure down payment in proposal
  2. Send proposal to customer
  3. Customer approves and pays deposit
  4. Final invoice credits the deposit

Why Use Down Payments

BenefitDescription
Cash flowReceive funds before work
Risk reductionCustomer committed
Material costsCover upfront expenses
Trust buildingProfessional process

Configuration Options

Company-Wide Default

Set default for all projects:

  1. Go to Settings > Billing & Invoicing
  2. Find Down Payment Settings
  3. Set default percentage or amount
  4. Save

Per-Customer Settings

Override for specific customers:

  1. Go to Rolodex
  2. Open customer record
  3. Find Billing Preferences
  4. Set custom down payment
  5. Save

Per-Project Override

Set for individual proposals:

  1. Open project
  2. Go to Proposal tab
  3. Find Down Payment section
  4. Set amount or percentage
  5. Save

Step-by-Step: Setting Up Down Payment

Step 1: Open Project Proposal

  1. Go to Projects
  2. Open or create project
  3. Navigate to Proposal tab
  4. Add line items as usual

Step 2: Configure Down Payment

OptionHow to Set
PercentageEnter % (e.g., 50%)
Fixed AmountEnter dollar amount
NoneLeave blank or set to 0

Example Settings:

ScenarioSetting
Large project50% down
New customer50% down
Repeat customer25% down
Small jobNo down payment

Step 3: Set Requirements

SettingEffect
RequiredMust pay to approve
OptionalCan pay now or later
NoneNo payment shown

For large projects with new customers, require down payment before approval. This ensures commitment and reduces risk.

Step 4: Send Proposal

  1. Review proposal with deposit shown
  2. Customer sees:
    • Total project cost
    • Down payment required
    • Balance due after
  3. Click Send Proposal

Collection Workflow

How It Works

Proposal Sent → Customer Approves → Down Payment Invoice → Payment → Work Begins → Final Invoice → Final Payment

Step-by-Step: Customer Pays Deposit

  1. Customer receives proposal
  2. Reviews and clicks Approve
  3. If payment required:
    • Payment form appears
    • Customer pays via card/ACH
  4. Down payment recorded
  5. You receive notification
  6. Begin work

Manual Collection

If customer pays offline:

  1. Create down payment invoice
  2. Send to customer
  3. Customer pays by check/cash
  4. Record payment manually

Down Payment Invoice

What's Created

Separate invoice with:

  • "Down Payment" label
  • Project reference
  • Due: Immediately
  • Amount: Deposit amount

Sending Invoice

Automatic:

  • Created when proposal approved
  • Sent immediately if configured

Manual:

  1. Open project
  2. Click Create Down Payment Invoice
  3. Send to customer

Applying to Final Invoice

Automatic Application

When creating final invoice:

  1. System detects down payment
  2. Shows as credit line item
  3. Reduces balance due

Example:

Line ItemAmount
Drilling services$10,000
Materials$2,000
Subtotal$12,000
Down Payment Credit-$6,000
Balance Due$6,000

Manual Application

If down payment not auto-applying:

  1. Open final invoice
  2. Click Apply Credit
  3. Select down payment
  4. Credit added to invoice

Handling Cancellations

When Customer Cancels

If a customer cancels before work begins:

  1. Review your cancellation policy
  2. Determine any applicable credits
  3. Process refunds manually through your payment processor

Automated refund processing is not currently available. Process refunds directly through your Stripe dashboard or issue manual refunds as needed.

ScenarioCommon Policy
Cancel before workFull refund
Cancel after mobilization50% retained
Cancel after work startsNo refund
Customer disputeCase by case

Include your cancellation and refund policy in proposals and contracts. Clear policies prevent disputes.

Accounting Treatment

QuickBooks Integration

When connected:

  • Down payment syncs as customer deposit (liability)
  • Final invoice shows deposit credit
  • Accounting handled correctly

Manual Accounting

If not using QuickBooks:

  • Record deposit as customer deposit liability
  • Transfer to revenue when work performed
  • Apply credit on final invoice

Multiple Deposits

Progress Billing

For very large projects:

  1. Initial deposit (e.g., 25%)
  2. Mid-project payment (e.g., 25%)
  3. Final payment (50%)

Setting Up Progress Payments

  1. Create first down payment
  2. After milestone, create additional invoice
  3. Record payments as received
  4. Final invoice credits all deposits

Troubleshooting

Down payment not showing on proposal?

  • Check Settings for default
  • Verify amount entered
  • Refresh and check again

Customer can't pay deposit?

  • Verify Stripe is connected
  • Check payment requirement setting
  • Try manual invoice instead

Deposit not crediting final invoice?

  • Ensure down payment marked as paid
  • Link to same project
  • Manually apply if needed

Refund not processing?

  • Check Stripe dashboard
  • Verify within refund window (180 days ACH)
  • Process manual refund if needed

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