Taking deposits in a furniture shop: the right way to record part payments

How much deposit?

Many independent furniture shops take 25% to 50% on made-to-order pieces and a smaller amount on stock items. Whatever your policy, the software should let you set a default and change it per order, as a percentage or a fixed amount.

Record the payment against the order, not the day

A till records money taken today. A furniture shop needs the money recorded against the order it belongs to, so that the balance due is visible on the order, on the customer's record and on the delivery run sheet. The driver should never have to ring the shop to ask what is owed.

Cash, card, bank transfer, finance

Customers pay in every way there is. Each payment needs a method, a date and a note, and finance agreements need the lender and the amount they will pay you recorded separately from what the customer pays at the till.

Balance reminders

When the piece arrives in the warehouse, the customer should get a message with the balance due and a pay-by-link so they can settle before the van sets off. Balances collected before delivery mean no awkward doorstep conversations.

Cancellations and refunds

Made-to-order pieces are usually non-refundable once the supplier has started; stock items may be refundable minus a restocking fee. Write your policy on the order confirmation, and make sure refunds can only be issued by an owner or manager, not every login.

VAT on deposits

For VAT purposes a deposit creates a tax point when it is received, so VAT is due on the deposit in the period you take it, and on the balance when that is paid. Software that holds every payment against the order gets this right automatically and feeds the nine-box return.

See how orders and deposits work in FurnitureShop Pro, or book a demo.