Manage customer deposits and advance payments

Depending on the type of work, deposits or advance payments might be required to start a project. Below are three methods for processing a deposit.

Record a deposit in the accounting system only

This is the recommended method. The deposit is recorded in your accounting system, but not in Sage Construction Management. This method applies only if your accounting system supports a deposit feature. A future Sage Construction Management prime invoice, such as a progress invoice, will then be applied to the deposit recorded in the accounting system.

1. Enter the deposit in the accounting system.
2. When it's time to prepare a progress invoice, log in to Sage Construction Management.
3. Create the prime invoice.
4. Export the prime invoice to the accounting system using AccountingLink.
5. Within the accounting system, apply the deposit from Step 1 to the prime invoice.

   The customer will then pay the balance.

Create a prime invoice equal to the deposit amount

This method does not require creating a special job cost code or schedule of values to represent the deposit. However, it assumes that the prime contract is set to Fixed Lump Sum rather than Cost Plus or Unit Price.

1. Log in to Sage Construction Management.
2. Create the prime invoice and import one or more schedules of values that will begin immediately at project start. You can include multiple schedules of values, as long as the total invoice amount matches the deposit.
3. Export the prime invoice to the accounting system using AccountingLink.

Create a change order that represents the deposit and invoice it

Similar to the second method, this option assumes that the prime contract is set to Fixed Lump Sum.

Step 1: Create a Deposit CO

1. Log in to Sage Construction Management.
2. Optionally, create a job cost code to represent the deposit.
3. Create a change order and mark it as approved with a status date.

   The change order number can be 0 or Deposit.

4. In the Proposed Items section, enter two items with the following information:
   • Description: Job Deposit
   • Quantity: 1
   • Units: LS
   • Unit Price: One line item will be a positive number equal to the deposit amount and the other negative with the same value. For example, $10,000 and -$10,000.
   • Job Cost Code: The same job cost code must be referenced on both items.

Step 2: Create a deposit invoice

1. Create the prime invoice to represent the deposit and import only the positive item from the change order created in the step 1.

   The billing percentage (%) must be 100% for the item. For example, $10,000.

2. Export the prime invoice to the accounting system using AccountingLink.

Step 3: Create a progress invoice

1. When you want to create a progress invoice, create another prime invoice with the items to be billed plus the negative item from the change order created in step 1. For example, -$10,000.
2. Export the prime invoice to the accounting system using AccountingLink.