Refundable deposits allow you to collect money from a client before a job has been accepted or before future invoices are issued, while keeping track of that amount so it can be credited back against future invoices.
This is commonly used when you need to cover upfront costs or when a client has overpaid an invoice. Refundable deposits work the same way across all job types.
Watch this video to get an overview, otherwise see instructions on specific tasks below the video.
When to use a refundable deposit
The most common use case is when you are preparing an estimate and need to pay for upfront costs, such as:
Surveying
Soil tests
Permits
Other project-related expenses
Rather than covering these costs yourself, you can request a refundable deposit from the client.
The key point is that the estimate should not be marked as accepted when creating the refundable deposit. The estimate can still be in a draft or final status because you are simply collecting funds while the estimate is still being worked on.
If the client decides not to proceed, the deposit helps cover any costs you have already incurred.
If the client does proceed, the deposit amount can be credited back against future invoices.
Creating a refundable deposit
To create a refundable deposit:
Open the job and create a new refundable deposit.
Enter the deposit amount.
Issue the invoice and receive payment as normal.
For example, you may create a refundable deposit for $500 to cover upfront project costs.
The name of the refundable deposit can also be customised if you prefer different wording.
Applying a refundable deposit to invoices
Once the client has paid the refundable deposit, you can apply that amount back to future invoices.
You can choose how you want to distribute the credit:
Apply a small amount across multiple invoices
Apply the full amount to a single invoice
Hold the full credit until the final invoice
The refundable deposit will reduce the remaining amount the client needs to pay.
When sharing invoice statements with the client, the statement will include a Refundable Deposits section showing:
The original deposit amount
The amount that has been credited
The remaining balance
Multiple refundable deposits
You can create multiple refundable deposits on the same job if required.
A common use case is when a client has overpaid an invoice.
For example:
An invoice is issued for $32,707
The client accidentally pays $33,707
The extra $1,000 cannot be received against the original invoice because it exceeds the invoice total
In this situation, you can create a new refundable deposit for the overpayment amount.
If you have any questions about refundable deposits, please contact our support team.