Invoicing large projects where you charge a percentage upfront and the rest upon delivery requires special handling with the SAT.

Tax Rule for Advances

According to the SAT’s filling guide, an advance payment only exists when the good or service, or its final price, is not known or has not been determined. If you already sent a detailed quote for $100,000 MXN and ask for a 50% deposit, for accounting purposes it is not an advance, it is an installment payment.

How to charge in installments in Cord

1. Create your Quote for the total amount ($100,000).
2. In the Payments and Advances section, select Require partial initial payment.
3. Define the percentage (e.g., 50%).
4. When the client accepts and pays those $50,000 with a card, Cord will issue an Invoice for the total amount in PPD (Payment in Installments) method.
5. At that very moment, Cord will automatically stamp an Electronic Payment Receipt (REP) Complement covering the deposit of the initial $50,000.

When the final delivery arrives, you just have to enter the invoice and generate a payment link for the remaining balance. Once paid, Cord will issue the second and final REP.