Need help with an invoice

[owenmc60]

Hi,

My business partner who usually deals with invoices is away on holiday. I’ve successfully created an invoice, but I can’t for the life of me work out how to make it so “balance due” is 50% of the total?

Can anyone give me some pointers? Many thanks in advance!

[Parker1090]

Why is only 50% of the balance due? Has 50% been paid? It is a 50% deposit?

Depending on the reason, depends how you would achieve it.

[owenmc60]

It’s a 50% deposit to commence production of a custom-made unit, with 50% payable upon completion.

[Parker1090]

There’s a couple of ways you could do it.

1. Normally I just invoice for the deposit stating that’s only x% of the total value (e.g. 50% Deposit for Project), and then invoice the remaining balance at the end. However, the final invoice, I tend to show the full amount with a discount equal to the deposit.
2. The other option you can do is just take a pre-payment and add it to the clients account, and then invoice in full on completion taking the pre-payment off.
3. Or, you could raise the full invoice, set the due date at say the expected completion date, and pay the deposit against it leaving the remaining balance outstanding. This is then paid at the end of the job

I suppose it would come down to whether you’re VAT registered or not. Even so, an invoice should be raised at the time the work was carried out. But with VAT, there are specific rules for deposits (I believe). I’m not an accountant, but if you are VAT registered, may be worth reading these:
http://www.vatark.co.uk/vat/howto/how-to-account-for-vat-on-deposits/

VAT and non-refundable deposits

Or - ask your accountant.

Hope that helps in some way!

[owenmc60]

Excellent, thats perfect, many thanks for taking the time to help me today