Input Needed - Prepayment for project

We are a specialty contractor for home audio, video, and automation.  I’d think our workflow would be similar to electricians, plumbers, fireplace, garage door, etc.
We present a quote and when it is accepted, we request a deposit to seal the deal.
We have created a sales order type IN for invoice that is a temporary document.
We can send via email the payment link with this sales order and once the payment is received, we delete the sales order.  This is a workaround to get the money on account.
The order is converted to a project, then service order(s), then appointments.  Deposit is applied to invoices from project.
Hope this helps.

Hi there,

1. Could you please share with me how do you need to recognize the taxes for AR deposit on project? and when do you need recognize taxes? What is your setup for taxes for deposit on project? → we dont record tax for deposit
2. Could you please describe your business case when you need deposit on project? → it depends on payment term with Customer or Vendor. These entity will require to have a deposit before shipping
3. How do you request deposit for project?
4. How do you process deposit got for project?
   • Record deposit from Customer: Create an Prepayment on AR302000. When issue Invoice to customer, applying that Invoice to Prepayment
   • Record deposit to Vendor: Create an Prepayment on AP302000. When record Bill from Vendor, applying that Bill to Prepayment
5. What is important for you when you work with prepayments on project?
   • Prepayment should show on Project Balance then we can have a cashflow of that project correctly
     • AR Prepayment is Asset
     • AP Prepayment is Liability

 Hope this helps!

Yên Chi

1. Could you please share with me how do you need to recognize the taxes for AR deposit on project? and when do you need recognize taxes? What is your setup for taxes for deposit on project? I have not seen many users need to collect taxes on deposits.
    
2. Could you please describe your business case when you need deposit on project? There are many but essentially some users need the ability to collect a deposit before work can start.
    
3. How do you request deposit for project?
   Would be nice to have a Payments tab in the project that a payment/prepayment can be created similar to how its done on a sales order.
4. How do you process deposit got for project?
   Once a Prepayment is associated to a project it should behave the same way it does on a sales order and be applied to any invoices created until it is fully applied.
5. What is important for you when you work with prepayments on project?
   Currently Payments/Prepayments do not have fields for Project/Project Task in the header or detail lines, adding that will provide for a better way of handling deposits and or tracking payment details to a project. This also opens up more ways to manage Revenue Recognition to a project without having to get creative with allocation rules and or multiple account groups.

One addition to my previous post would be the ability to have a payment created from an opportunity or project quote and that payment flow over to the project