This article explains how to set up and manage deposits and credits for appointments. It covers how to apply taxes to both deposits and final payments, how to record cash or card transactions correctly, and how to apply credits as positive values. It also shows how to use appointment statuses to track deposits and credits accurately in reports.

When dividing the total cost of an appointment to collect a deposit, taxes must be applied correctly.

There is no way to collect a tax-free deposit and still charge the full tax on the total appointment price.

If you take a tax-free deposit of $250, the remaining appointment balance becomes $250, taxed at 8% = $270 total.
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This causes a $10 tax shortfall. To remain compliant:

Most businesses choose to apply tax to the deposit to ensure correct accounting and avoid undercharging taxes.

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From the ZenMaid Dashboard, go to Settings and click on Appointment statuses under Scheduling.

Create a new status, such as "Deposit," by clicking the + Add Status button, then click Save Changes.

To have the appointment appear on your calendar, payroll, and work orders, click the "+" icon next to the status and select your preferred boxes.

Next, create a new appointment with the status "Deposit" next to the appointment for which you want to charge a deposit.

In the Billing section, fill in:

After creating the deposit appointment, you can charge it using an invoice, credit card, or cash payment.

From there, you can create another appointment to issue an invoice for the remaining balance of the service, using the same process you used for the deposit invoice.

If you apply tax to the main appointment, you must also apply tax to the deposit. Once an appointment is booked, the deposit counts as a partial payment for that taxable service. Sales tax is therefore required on both the deposit and the final balance to ensure the total tax collected matches the full taxable amount. Only fully refundable deposits that are not yet linked to a service can be tax-free.

Charging tax only on the remaining balance would result in under-collecting total taxes owed.

A credit works like a deposit that has already been collected. It represents money on the customer’s account that can be applied to future appointments.

Credits reduce the total amount due when invoicing.

Taxes must still reflect the full service price, not the reduced total after credit.

When applying a credit, the tax should be calculated on the entire service amount, and the credit is subtracted afterward.

Service: $100

Tax: 8%

Total: $108

Customer credit: $25

Subtotal: $100

Tax: $8

Total: $108

Less credit: $25

Balance due: $83

Always enter credits as positive values.

Credits offset future charges automatically within the system—no negative amounts are required.

This ensures accurate tax calculation and easier reconciliation in reports.

It's not possible to enter a negative value in the appointment billing.