Taking customer deposits on Cin7 Core (2024)

Cin7 Core (formerly DEAR Systems) continues to innovate and improve its platform, offering a faster and more efficient experience for product sellers.

The core product has seen significant enhancements over the years and in this quick article we will be focusing on the payments sector, supporting growth and streamlining processes for businesses.

Enhanced Deposit and Progress Payment Capabilities with PencilPay

At PencilPay, we have been actively listening to our Cin7 Core users and implementation partners over the years. Based on feedback from 50 companies, we’ve developed features for receiving and tracking deposits or progress payments within Cin7 Core.

These capabilities are available at the quote, order, or invoice stage, making them ideal for businesses that require deposits or installment payments before releasing goods.

To utilize this feature, you will need a PencilPay account. Sign up for a free 14-day trial. The instructional video below will show you how it works.

Simplifying Payment Workflows

We understand that dealing with payments can raise questions about workflows, disbursements, and reconciliations. We offer guidance through product demos, and you can also find answers in our comprehensive FAQs below.

Benefits for Manufacturers, Wholesalers, and Importers

If you’re a manufacturer, wholesaler, or importer who experiences a time gap between order placement and product delivery, the Cin7 Core deposit feature can save you time, reduce human errors, and expedite payments.

 

FAQs

 

How Do You Calculate the Deposit Amount?
  • The deposit amount is calculated when a sales quote or order is raised.
  • Note that GST cannot be calculated on deposits or pre-payments at the quote or order stage. Instead, a 10% line item is added, and GST is recognized at the invoice stage.
  • The deposit is taken as a percentage of the invoice amount, plus 10%.


Example: If a customer orders $50,000 worth of wine (including GST) from Burgundy, France, and you need a 50% deposit to import additional stock, you can raise the sale, authorize the quote, and send a link for the customer to pay the $25,000 deposit. This credit is logged in the quote for when the stock arrives. Placing the sales order will trigger the remaining $25,000 payment to be processed.

 

How Does the Credit Get Applied in Cin7 Core?
  • After taking deposits at the Quote stage, a credit is logged at the bottom of the Quote in Cin7 Core.
  • After taking deposits at the Order stage, a credit is logged at the bottom of the Invoice in Cin7 Core.
  • After payments are made at the Invoice stage, a credit is logged at the bottom of the Invoice in Cin7 Core.

How Do I Complete a Bank Reconciliation with Cin7 Core, Xero, and PencilPay?
  • All payments associated with a sale will appear in Xero against the relevant invoice. Whether you take one or multiple payments today, you will receive one disbursement tomorrow, which can be easily reconciled in Xero with a single click.