This article explains how to enable the performance bond feature in Qoyod, add the bond amount on sales invoices, and the available methods to settle the bond with the customer.
What is a performance bond
A legal commitment given by a contractor or supplier to guarantee the work is delivered according to the specifications and terms agreed in the contract. It protects the customer from any failure to perform the contract.
Enable the feature
- Open “Settings” then “General Settings”.
- Select “Sales Invoice Settings”.
- Enable the option “The organization has performance bond transactions”.
- Click “Save”.
Add a performance bond on a sales invoice
- When creating a new sales invoice, the “Performance Bond” option appears.
- Set the bond amount (a direct value or a percentage).
- Enter the expected due date of the bond.
Fixed amount vs percentage
- Amount: the entered figure is withheld as the bond.
- Percentage: calculated from the invoice total before VAT.
The bond value appears in its dedicated field, and the amount due from the customer is reduced by the withheld bond.
Performance bond settlement methods
- At invoice creation: record a partial payment on the invoice while accounting for the bond.
- From the invoices page: use the payment icon next to the invoice.
- Create a customer voucher: record a Payment Voucher for the bond value when it falls due. If the amount is higher than the bond value, the difference is settled against the invoice or the customer account.
