As an example, lets say you charge $1000 for a service and you require the customer to pay a $200 deposit.

Option 1 (a): 

  1. Raise an invoice in Hnry for the deposit amount only i.e. $200
  2. When the job is complete, raise another invoice with one line for the total cost of the job i.e. $1000 and a second line with a negative value for the deposit amount already paid i.e. -$200. This will leave a remaining total balance of $800 left to pay

Option 1 (b):

  1. Raise an invoice in Hnry for the deposit amount only i.e. $200
  2. When the job is complete, raise another invoice in Hnry for the remaining balance of $800 NB: This option provides less of an audit trail for you and the customer than Option 1 (a)

Option 2:

  1. Raise invoice for the total amount i.e. $1000 
  2. Client part-pays the deposit amount through Hnry, and then upon completion of the work, pays the remaining balance. NB: The client may continue to receive overdue notifications whilst you are completing the work if you go with this option.

NB: It is essential that any deposit amounts are paid via Hnry. 

A deposit is simply a part-payment of the total service fee you are charging and must be declared as income. If you require a fixed amount up front to buy supplies etc to complete the service then consider making your deposit amount higher to allow for the tax portion that will be taken. Or, if you are being transparent with your costs and wanting to pass them onto your customer, then you can raise an invoice for a Client Chargeable expense of $200 to cover the cost of supplies and this will not be taxed as income. 

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