Deposit Invoice feature to develop or I missing something?

Hello dear all,

As I read in ERPNext the sales process can be

  • Quotation=>Order=>Invoice=>Paiement
  • Quotation=>Order=>“Advance” Payment=>Total Invoice (on witch you can retrieve outstanding payment from Advance payment)=>Payment

Here is the target process :
Quotation=>Order=>Deposit Invoice according Payment Term (something like 30% of Total Order on agreement and rest on delivery)=> Payment on Deposit Invoice=>Invoice (on witch you can retrieve outstanding payment from Deposit invoice)=>Payment.

The missing part, as I see, is the Deposit Invoice that can be created according Payment Term. Deposit invoice are real invoice, not just “advance payment”. Payment on Deposit Invoice can be consider like Credit Note credit. In some country, like in France, in B2B, you cannot get money from your customer without make an invoice, it’s just not legal, and Deposit Invoice a are a common process.

Did you have to deal with something similar in your intégration ? How did you solve it ? Custom developpement ? Document model for “Advance payment” ? Or core feature that I didn’t find out ?

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From a workflow perspective, what you’re describing sounds very similar to how ERPNext implements “Payment Requests”. You create a single comprehensive invoice to cover the full transaction, and then Payment Requests can be issued according to defined terms. The language is a bit different, but you could create a print format using Deposit Invoice terminology for all customer facing parts.

Thank’s for the tips. I didn’t think about it.
But desire the workflow is not exactly the same.
Order => Deposit invoice of 30% of amount (according defined payment term). This deposit invoice have as lines (1 lines per Tax Item from original order) with a “fake article”, let’s call it Deposit, and description “Deposit of 30% For order N°XXXX” .
If paid => Payment Entry. If never paid => Credit note to Cancel it.
Later at delivery time, from the order => Full invoice of total TTC => retreive the previous payment from Deposit Invoice and output PDF with Total TTC - Previous payment from deposit invoice N°XXX => Amount Due.

I’ll try to tweak PDF Payment request. Thank again for the hint

It’s possible I’m completely misunderstanding, but everything you’re describing should be possible with a Payment Request and a custom print format.

The only thing that’s not clear to me is the accounting. For accounting purposes, Is a Deposit Invoice a real invoice, i.e., does it create a ledger entry in accounts receivable? If so, how is the full invoice booked?

Thanks for the answer, on accounting sides, There is two choice (depend if you sell service or product)

  • It will be an invoice like other: customer+product/service+tax into sell journal => Payment : Customer+Bank into bank journal , in this case Payment request cannot be use
  • Or just a bank transaction Customer + Bank into bank journal, in this case it’s will be ok with payment request and tweak PDF

The issue is less about how to book the payments and more about how to book the income/receivable. If you have a $100 total sale with a $30 deposit invoice, do you have two income entries ($30 deposit invoice + $70 remainder) or just one ($100 total invoice)?

2 incomes : $30 deposit invoice + $70 remainder.

Hmm…is this cash-basis accounting? If it’s accrual-based, that’s a very different approach to accounting than I’ve ever encountered before. If you’re splitting the total sale into two different accrual entries, how do you do things like cost of goods sold and inventory valuation?

My local accounting standard wouldn’t allow what you’re describing. We might collect pre- and post- payments in different ways, but the invoice (and associated accrual entries) have to represent the total. ERPNext’s system is really designed for that structure. Sorry I can’t help more, but I don’t really understand how what you’re describing works. Perhaps somebody with more experience in France will chime in.