What it is for
- It commits the customer. Someone who has paid part of the price does not vanish halfway through the job.
- It funds the materials you have to buy before you start.
- It lowers the risk of non-payment with new customers or custom work.
An example
Replacing a boiler is quoted at $3,200, with a 30% deposit on acceptance. The customer pays $960 and the job goes on the schedule. When it is done, the remaining $2,240 is collected, and the final invoice deducts what was already paid.
Collecting is not invoicing
A deposit is a payment. In many countries, Spain among them, a deposit received needs its own invoice, and the final invoice deducts it. That is your ERP’s job, not the job of the tool you collect with.
The usual mistake
Asking for it by email and waiting for the bank transfer. The customer says yes, the payment takes a week and the job waits. Or the job is scheduled without collecting and the deposit is forgotten. The time to collect it is the moment the customer accepts.