Vendor Deposits Overview
There are two ways that most design firms deal with Vendor Deposits:
- Some firms will determine the vendor's required deposit before they send the PO to the vendor so they can send payment along with the PO.
- Other firms will not bother calculating what the vendor will require as an initial deposit. These firms will send the PO to the vendor without any form of payment, and wait for the vendor to respond with how much they require as a deposit.
Both methods have advantages and disadvantages, and DesignSmart can provide the workflow processes for both types of firms.
If your firm uses our QuickBooks Connector module to link to QuickBooks, please request an online overview of how the module processes vendor deposits into QuickBooks!
If your firm predominately sends money with purchase orders:
If your firm prefers to send Vendor Deposits with purchase orders, then please read these sections:
If your firm waits for vendors to request a deposit:
If your firm prefers to not send money with the purchase order, then when the vendor requests a deposit you can enter that amount. Please read this section: