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This text refers to program version 5.2  

Operations Menu - Create Down Payment Invoice

You should raise a Down Payment Invoice when you receive a deposit against an Order or if you wish to ask for one. You can compose a standard text that will be printed on such Invoices, and you can specify that their value will be a certain percentage of the Order value. To take advantage of these features (defined using the Down Payments setting), use this function to create Down Payment Invoices. You must first save the Order using the [Save] button.

This function can behave in one of two ways, depending on whether you are using the Details On Invoice option in the Down Payments setting.

Details On Invoice off

If you are not using the Details On Invoice option, a Down Payment Invoice will be created immediately you select the function. It will contain a reference to the Order to which it belongs and the Down Payment amount.

The Invoice text ("Deposit for Order No " in the illustration) is taken from the Text field in the Down Payments setting. The Down Payment amount is a specific percentage of the Order value, calculated using the Down Payment Percentage of the Customer Category to which the Customer belongs or, if that is blank, the Percentage in the Down Payments setting. This setting will also specify whether this percentage is to be applied to the Order value including or excluding VAT. You can change the default Down Payment amount in the Invoice if necessary, but not to an amount that is greater than the value of the Order. If you create a second Down Payment Invoice from an Order, the default Down Payment amount will be zero. Again, you can change this figure if necessary, but not to an amount that means the total of the two Down Payment Invoices is greater than the value of the Order.

The Down Payment Invoice is treated just as any other Invoice: you should approve it before sending it to the Customer and before any Nominal Ledger Transactions are created.

When you raise the final Invoice from the Order, it will contain a reference to the Down Payment, which will be shown as a deduction from the total. The effect will be that the aggregate total of the Down Payment Invoice and the final Invoice will equal the Order total. If necessary you can delete the Down Payment row on the final Invoice and invoice the full amount. The final Invoice from the Order in the example is shown on the page describing the 'Create Invoice' Operations menu function.

When you approve the Down Payment Invoice, a Nominal Ledger Transaction will be created (if so defined in the Sub Systems setting in the Nominal Ledger), crediting the Account shown in the first row of the Invoice. The default for this Account is the Sales Account of the Item (or of its Item Group) specified in the Down Payments setting. If this is blank, or if you have not specified an Item in the Down Payments setting, the appropriate Sales Account for the Zone of the Order is used, as specified on the 'Sales' card of the Account Usage S/L setting in the Sales Ledger. It might be that you need to change this to a Debt Account used to hold the value of Down Payments until the final Invoice is issued. This has been done in the illustration, using Account 770. When you issue the final Invoice, the resulting Nominal Ledger Transaction will debit the same Account with the Down Payment amount. The Item specified in the Down Payments setting also supplies the VAT Code and thus determines how VAT will be accounted for in Nominal Ledger Transactions created from Down Payment Invoices.

Details On Invoice on
If you are using the Details on Invoice option in the Down Payments setting, the 'Specify Down Payment Invoice' window will open when you select the function:

Enter the percentage of the Order total that is to be the value of the Down Payment Invoice (the default is the standard percentage from the Customer Category or from the Down Payments setting, and you cannot enter a figure greater than 100%). When you click [Run], a Down Payment Invoice will be created:

The Order Items are listed individually in the Down Payment Invoice, the Down Payment percentage having been applied to the Sum of each one. The choice in the Down Payments setting to apply the percentage to the nett or total figures is not used.

The Down Payment Invoice is treated just as any other Invoice: you should approve it before sending it to the Customer and before any Nominal Ledger Transactions are created.

When you raise the final Invoice from the Order, it will contain a reference to the Down Payment, which will be shown as a deduction from the total. The effect will be that the aggregate total of the Down Payment Invoice and the final Invoice will equal the Order total. If necessary you can delete the Down Payment row on the final Invoice and invoice the full amount.

If you try to create a second Down Payment Invoice, it will not be created if you enter a Down Payment Percentage that will mean the total value of the two Down Payment Invoices is greater than the value of the Order.

Deleting a Down Payment Invoice
If you create a Down Payment Invoice by mistake using this function, you can delete it using this procedure, providing you haven't approved it:

1. Set the value of the Invoice to zero. Do this by removing every row from the Invoice or by changing all quantities to zero.
   

2. Save the Invoice.
   

3. Delete the Invoice using the 'Delete' command on the Record menu.

Crediting a Down Payment Invoice
If you need to reverse a Down Payment Invoice, you cannot follow the standard crediting procedure. Instead, you should create a second Down Payment Invoice from the Order. If you are not using the Details on Invoice option, the default value of the Invoice will be zero. Enter the value to be credited, as a negative figure. If you are using the Details on Invoice option, enter the appropriate percentage in the 'Specify Down Payment Invoice' window, as a negative figure. Note: the Down Paid figure in the 'Orders: Browse' window will not include any negative Down Payment amounts.

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