# Upfront deposit of 50% **URL:** \ **Category:** Uncategorized\ **Created:** [September 14, 2018, 2:54am UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002 "2018-09-14T02:54:29Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Amanda1](https://avatars.discourse-cdn.com/v4/letter/a/ec9cab/32.png) [@Amanda1](https://forum.manager.io/u/Amanda1)\ **Post date:** [September 14, 2018, 2:54am UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/1 "2018-09-14T02:54:29Z")
Is there a way to ask for a deposit of 50% on a Tax Invoice? Customer wants one invoice per job. We ask for 50% deposit as a project can take 3 or 4 months to complete. Thanks for any tips. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [September 14, 2018, 3:36am UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/2 "2018-09-14T03:36:36Z")
You have a couple options: - One is to use a sales quote, retitled as a Pro Forma Invoice, listing the deposit to be advanced. Enter the deposit as described in this Guide: [Record customer deposits and advances | Manager](https://www.manager.io/guides/7093). The quote itself will have no financial impact. - Another, if your contract or understanding with the customer allows, is to send a sales invoice for the full amount with a note saying work will begin after a 50% deposit is received. Enter a normal receipt against the sales invoice, but for only the amount deposited. The sales invoice will show the receipt, reducing the balance due, and you can send the same-numbered sales invoice at the end of the job. This may have tax consequences from recognizing income earlier. ---
**Author:** ![Amanda1](https://avatars.discourse-cdn.com/v4/letter/a/ec9cab/32.png) [@Amanda1](https://forum.manager.io/u/Amanda1)\ **Post date:** [September 14, 2018, 3:38am UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/3 "2018-09-14T03:38:47Z")
Thanks for your reply! ---
**Author:** ![Davide](https://avatars.discourse-cdn.com/v4/letter/d/258eb7/32.png) [@Davide](https://forum.manager.io/u/Davide)\ **Post date:** [September 14, 2018, 5:36am UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/4 "2018-09-14T05:36:41Z")
Keep in mind that, in many states, the second solution will bring a full VAT taxation on the whole amount, ie you’re paying twice the amount you should pay in that period. Also, the two solutions have a different impact on the balance sheet. The first one will bring you a liability of 50%, the second one a credit of 50%. Since you didn’t complete the job, under a legal point of view, the only correct answer is the first one. You received some money for a service you’ll bring in the future. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [September 14, 2018, 1:10pm UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/5 "2018-09-14T13:10:13Z")
> [@Davide](#): > > the second solution will bring a full VAT taxation on the whole amount Just as I said: “This may have tax consequences from recognizing income earlier.” Those consequences could be relative to VAT, sales tax, income tax, or any other type dependent on revenue. > [@Davide](#): > > under a legal point of view, the only correct answer is the first one That depends on the terms of any contract, also as I said. An agreement might allow for advance billing, with provisions for restitution upon failure to complete the job. ---
**Author:** ![Davide](https://avatars.discourse-cdn.com/v4/letter/d/258eb7/32.png) [@Davide](https://forum.manager.io/u/Davide)\ **Post date:** [September 14, 2018, 4:14pm UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/6 "2018-09-14T16:14:37Z")
> [@Tut](#): > > That depends on the terms of any contract, also as I said. An agreement might allow for advance billing, with provisions for restitution upon failure to complete the job. In this case you may have to adjust the BS and the P&L with a journal entry to have a correct accrual based accounting. ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 3:09pm UTC](https://forum.manager.io/t/upfront-deposit-of-50/18002/7 "2023-01-18T15:09:07Z")