Taking deposits on DEAR Systems

November 26, 2021Cash Flow , Partners

DEAR Systems has made significant updates to their platform in 2021. Their core product is better, faster and has focussed on building unique ways for product sellers to grow in a 2021 world. An area where functionality has expanded has been payments, having launched  DEAR payments in addition to partnering with 5 other payment services providers.

These payment providers process credit card transactions by clicking on a DEAR Sales Invoice, or checking out on the DEAR B2B portal. This has given users the ability to get invoices paid and stock released, prior to reaching Xero or Quickbooks.

At PencilPay, we have spent the last 12-months listening to our DEAR users and implementation partners. After receiving a ton of feedback from 50 companies, we have built capabilities for receiving and tracking deposits or progress payments in DEAR; at the quote, order or invoice stage.

The PencilPay x DEAR deposit feature is suited to businesses that take deposits or payment instalments prior to releasing goods.

To use this feature, you will need a PencilPay account. To sign up for a free 30-day trial,  you can go to PencilPay.com and scroll down to select your plan. The video below will show you how to get started.

When dealing with payments, we know there are always more questions about workflows, disbursements and reconciliations. We can either guide you through these answers in a product demo, or you can check out some FAQ’s below.

To summarise, if you are a manufacturer, wholesaler, importer who has a time-gap between taking an order and getting the product landed or manufactured, this feature will save you time, remove human errors and get you paid faster.

FAQ’s

How do you calculate the deposit amount?

• The deposit amount is calculated once a sales quote or order is raised.

• Keep in mind GST cannot be calculated against deposit’s or pre-payments at the quote or order stage.

• They get around this by adding a 10% line item and recognising the GST at the invoice stage.

• The deposit is taken as a percentage of the invoice amount, plus 10%.

For example, your customer orders $50,000 incl GST worth of Wine from Burgundy, France. This means you need to import extra stock to cover your inventory shortfall, for which you will need a 50% deposit. You can raise the sale, authorise the quote and send a link to the customer to pay the $25,000 deposit. This will credit the quote for later on when the stock arrives. You will place the sales order and this will trigger the other $25,000 to be sent and processed.

How does the credit get applied in DEAR?

• After deposits are taken at Quote, a credit will be logged at the bottom of the Quote in DEAR.

• After deposits are taken at Order, a credit will be logged at the bottom of the Invoice in DEAR.

• After payments are taken at Invoice, a credit will be logged at the bottom of the Invoice in DEAR.

How do I complete a bank reconciliation with DEAR, Xero and PencilPay?

All payments associated with a sale will appear in Xero against the relevant invoice. Whether you take one or 100 payments today, tomorrow you will receive one disbursement, which you can easily reconcile in Xero in a single click.