Invoice for Deposits
If you collect pre-payment for events, we recommend using our deposit invoice workflow - even if you won't be sending the invoice to your clients. This will allow you to:
- Allocate deposits to a specific GL account.
- Allow the app to auto-calculate the percentages of charges for your payment installments.
- Have a dashboard listing issue dates for deposits for upcoming events (contact us to have this added to your account).
- Use our AR/Aging Report to track due and overdue deposits.
Note that the workflow below is used for pre-payments for your events. If you collect for damage deposits as additional line item charges in addition to the event charges, these should be created as inventory items, added to the event, then included on your estimates/invoices. The damage deposit charge can then be adjusted if all or part of the deposit is returned.
Deposit invoices are created using the same Create Invoice slider as regular invoices. You'll simply check Deposit Invoice after entering the general invoice information. Once you've checked Deposit Invoice you will specify:
- The deposit type. The deposit type allows you to specify your deposit (deferred revenue) GL account.
- Choose whether this is a flat amount or if it should be a percentage of charges.
- If it is a flat amount, you will enter the amount of the deposit.
- If it is a percentage, you will enter the rate and the balance is calculated for you.
Step-by-step instructions for creating a deposit invoice are available in Create an Ad Hoc Deposit Invoice.
Once the deposit invoice is created, it will function like all other invoices: they can be sent or downloaded, and the event and account will show as having a balance due until the deposit invoice is paid. Payments and credits are allocated to deposit invoices, just like regular invoices.
When it is time to settle the event, you will create a final invoice. In addition to selecting all event charges, you will be able to select the previously issued deposit invoices you wish to apply towards the final invoice:
The balance of the final invoice will be calculated based on charges less deposits:
Step-by-step instructions for creating a final invoice are available in Create a Final Invoice.
Before you are able to create deposit invoices, you will need to create at least one deposit type. Deposit types are used to ensure that deposits are recorded in the correct GL account in your accounting system. If all deposits are in the same GL account OR if you are not recording deposits in your accounting system via an integration or report from Momentus Elite, you can create a single deposit type.
When you create the deposit types, you will have the option to choose a GL code and to specify taxes:
- The GL code is selected from a drop-down list. GL codes are added on the GL Code tab in the Setup area. Selecting a GL code is not required.
- Taxes: There are three pieces of information stored in the database for each deposit: deposit amount, deposit taxes, and deposit total.
- With percentage deposits, the breakdown is calculated based on the items and their taxes. This ensures that when the deposit is applied to the final invoice, the proper amount of tax has been charged.
- With flat deposits, we have no way of knowing the tax amount to calculate, since no charges are selected. Any taxes selected here will be used to calculate the tax amount of the deposit.
Please see Manage Deposit Types for instructions on creating a deposit type.
Invoice Schedule Templates
Invoice Schedules allow you to create your deposit schedule as a template which is then applied to events. This schedule will simplify the process of creating your deposit invoices, as well as track deposit invoices which need to be issued for upcoming events.
Invoice schedules are designed to handle the event's entire deposit/invoicing life cycle. An invoice schedule's installments will not update to account for deposit invoices outside of the schedule, although the final invoice will be able to include ad hoc deposit invoices and will exclude any charges already billed.
Should I use an invoice schedule or create ad hoc deposit invoices?
- If you charge a flat deposit amount, create deposit invoices ad hoc.
- If you are creating a deposit invoice against all charges currently added to the event, you can do either.
- If you need to create a deposit invoice against only some of the charges on the event (e.g. the deposit invoice is 100% of rental charges, but other charges have been added to the event to create an estimate) use an invoice schedule. This will allow you to select specific charges to use to calculate the balance.
- Schedules simplify creating a deposit invoice - the percentage, due dates, terms, and template are all added as a part of the schedule. To create the invoice, all you have to do is update the charge selection, click Create Invoice, and save.
- Creating a schedule will allow you to have a list across all events of deposit invoices which need to be created or sent, without having to create tasks. Contact us to have a report or dashboard added to your account.
Please see Create an Invoice Schedule Template for instructions on creating an invoice schedule template.
Using Invoice Schedules
Invoice schedules are applied to an event on its Financials > Invoices tab. Simply click the plus, select the schedule, select charges, and save. Each installment will be listed with the date it should be issued, its due date, and the amount the invoice will be for. You will be able to create each installment invoice easily with as few as two clicks.
We have detailed instructions for each step of the process: