Introduction:

Managing invoices can sometimes be a complex task, especially when dealing with deposits and final payments. One significant issue we faced was the application of Provincial Sales Tax (PST) on deposits. This article will walk you through the steps we took to resolve this problem effectively using ServiceBox, ensuring a smoother and more efficient invoicing process.


The Problem:

One of the challenges businesses face is sending separate invoices for both deposits and final payments, which can lead to PST being prematurely charged on the deposit. 

For example:
The First Invoice - Issued for the 50% deposit.

The Second Invoice - Issued for the remaining 50% payment upon job completion.

However, this method led to PST being charged on the deposit, which was not ideal. Clients were seeing an unnecessary PST charge on the initial deposit, complicating the payment process and causing confusion.


The Solution:

With ServiceBox, you can streamline the process by creating one comprehensive invoice and providing clear communication with the client regarding the deposit and final payment. 

1. Creating an All-Inclusive Invoice:

  • Start by creating an invoice for the total job amount in ServiceBox right from the outset.
  • Ensure the invoice is detailed and includes all expected charges for the job.


2. Communicating With Your Client:

  • Use the Invoice Email Tab in ServiceBox to communicate with your client.
  • Draft a cover page for the email, highlighting the total invoice amount and explaining the deposit request.
  • Include a phrase on the cover page such as, "We kindly request a deposit of $_______ to order parts and begin work. Upon receiving your deposit, we will issue an updated invoice reflecting the payment and the balance due."




3. Processing Deposit Payments:

  • When a deposit payment is received, mark it accordingly in the ServiceBox Payment Tab.
  • ServiceBox will automatically update the invoice to display the total due, the deposit received (without a separate PST charge), and the outstanding balance.


4. Finalizing Payments and PST Charges:

  • Once the job is completed and the final payment is collected, ServiceBox will calculate and include the PST on the total amount.
  • Send the final updated invoice to the client, showing the completed payment along with the PST charge.


Benefits of This Approach:

  • Reduces confusion by providing a single, clear invoice.
  • Avoids early PST charges, aligning tax collection with the completion of service.
  • Enhances customer satisfaction by simplifying the payment process.


Conclusion:

Using ServiceBox to consolidate deposit and final payments into a single invoice can help businesses streamline their invoicing process and ensure PST is charged accurately at the completion of the job.