For a wedding catering & hire business, we quote a customer sometimes 18-24 months before the event and a deposit is required to secure the date before the full final package is known. At the moment, I am generating a deposit request from outside Sage and then entering the deposit as a Payment on Account against that customer on Sage when the money comes into the bank..

Is that he neatest way of dong it? I would like to keep the whole process in Sage so that I can accept card payment for those deposits but I do not want to have to create an invoice so far in advance that I can not change later because it has been sent and paid. Or is that what he pro-forma invoice is for? And if so, what do nominal code do I post the deposit to? An income account or a control account?

Also, next year we will have to register for VAT. What happens then with deposits? Do I charge VAT on the deposit?

Any advice gratefully accepted.

Koo