Taking an initial payment while creating an invoice

An initial payment (or deposit) is money collected from the customer at the time you create the invoice. This reduces the outstanding amount the customer still owes. Initial payments are useful for upfront deposits, prepayment for projects, or immediate cash sales.

Before you start

• Your role must allow you to create invoices.
• The customer contact must exist in your system.
• Know the payment amount and method (cash, check, bank transfer, etc.).
• Know which account to record the payment in (e.g., cash account, bank account).

Steps

1. Go to Invoices → New Invoice. Open in Usystems

2. Select the customer and add all line items, discounts, and taxes as usual.

3. Look for the Payments section (usually near the bottom of the form, before the final total).

4. Click Add Payment or + Payment.

5. A payment row appears. Enter:

   • Payment Date: the date you received the payment (defaults to today).
   • Payment Method: the method used (cash, check, card, bank transfer, etc.).
   • Account: the cash or bank account where the money is being received.
   • Amount: the amount the customer is paying now.
   • Reference (optional): a note or reference number (e.g., check number, transaction ID).

6. The Balance Due or Outstanding amount on the invoice decreases as you add the payment.

7. If you collected the full invoice amount, the balance due is zero.

8. Save or submit the invoice.

Accounting impact

When an invoice with an initial payment is confirmed:

• The Cash or Bank account is debited with the payment amount.
• The Accounts Receivable account is debited with the invoice total.
• The Sales Revenue account is credited with the invoice total (less any discounts).
• If the payment is less than the invoice total, Accounts Receivable reflects the remaining balance.

Tips & common mistakes

• Initial payments reduce what the customer owes. If the invoice is 1,000 and you collect 300 upfront, the customer owes 700 more.
• Payment account is important. Choose the correct cash/bank account so your bank reconciliation is accurate.
• Multiple initial payments. You can add more than one payment row if the customer pays in installments before the invoice is finalized.
• Payment method documentation. Include payment references (check numbers, transaction IDs) for audit and reconciliation purposes.
• Invoice status with partial payment. After you save, the invoice may show a Partial or Pending status if the payment doesn't cover the full amount.