Payments, deposits and transactions
Once an invoice is issued it becomes money owed. Transactions are how that money is tracked — what has been paid, what is held as a deposit, and what is still outstanding.
Where: Invoices › Overview You need: invoicing rights for the clients concerned
The two kinds of transaction
| Category | Is |
|---|---|
| Payment | Money received against an invoice |
| Deposit | Money held — a security deposit or advance holding |
Each is recorded as a credit or a debit, and carries a status of unpaid or paid.
The distinction matters at year end and in any dispute: a deposit is the client's money that you hold, not revenue. It may eventually be returned, applied against an invoice, or retained — and until then it is a liability rather than income.
Recurring deposits
A deposit can be set to recur, calculated either as a percentage of wage or as a fixed amount. That suits arrangements where a client maintains a rolling security deposit proportional to the payroll you run for them.
Returning a deposit
Deposit returns have their own status, because they are frequently partial:
| Status | Means |
|---|---|
| Pending | Return owed, not yet made |
| Partially returned | Some returned, a balance remains |
| Returned | Settled |
⚠️ Partially returned is the state that gets forgotten. It looks handled on a list and is not, and the remaining balance is the client's money. Report on deposit returns separately rather than assuming a return was completed.
Paying online
Clients can pay through Stripe where the payment portal is configured, which records the payment against the invoice without anyone re-keying it. Payments received outside it are recorded manually.
The receivables view
The overview aggregates what you are owed:
| View | Shows |
|---|---|
| Outstanding | Unpaid, pending and declined |
| Past due | Invoices beyond their due date |
| This period | Invoices raised in the current period |
| Awaiting payment | Issued and unpaid |
These roll up into your reporting currency, so clients billed in different currencies are comparable — see Currencies and FX rates.
What Happens Next
- Payments move an invoice's status toward paid.
- Deposits are held against the client until applied or returned.
- Outstanding and aging figures update as transactions are recorded.
Tips
- Reconcile recorded payments against the bank weekly. A payment received and not recorded means someone chases a client who has already paid — the fastest way to damage a client relationship over an admin error.
- Review deposit returns monthly, looking specifically for partially returned.
- Use the aging view, not the outstanding total. The total tells you how much; aging tells you which conversations to have.
- Record payments against the specific invoice, not as a lump against the client, or matching becomes guesswork later.
- Check the reporting currency before comparing clients billed in different currencies.
Troubleshooting / FAQ
Q: A client paid but the invoice still shows unpaid. The payment has not been recorded against it. Check the bank and record it.
Q: A deposit is still showing after we returned it. Check whether it is marked partially returned — a balance may remain.
Q: Outstanding does not match my own figures. Outstanding includes unpaid, pending and declined. Compare like for like.
Q: Can clients pay online? Yes, through Stripe where the payment portal is configured.
Q: Totals look wrong across currencies. They are converted into the reporting currency at the rate set for that period.