Does a refundable rental deposit belong as a line on the quote or in the notes?
Usually in the notes. Anything you add as a line goes into the subtotal and is taxed at the quote's single rate, so the total swells and tax appears on money you will hand back. State the deposit, its amount and the refund terms in ‘Notes and terms’, and when it is paid, issue a separate receipt for it.
What happens if you enter it as a line
A tent rental company in Riyadh quotes a furnished tent for a family event at 4,200 SAR, and asks for a refundable deposit of 600, returned once the tent comes back undamaged. Tax in the example is at the rate the company entered (15%):
Rental alone: 4,200.00, tax 630.00, total 4,830.00.
Rental plus the deposit as a line: subtotal 4,800.00, tax 720.00, total 5,520.00.
The difference in tax is 90.00 SAR, charged on money that is meant to go back to the client.
The tool has no idea a line is refundable; it applies one rate to everything in the table. So there is no way to exempt a single line from tax within the same quote.
The clearer way: the deposit in the terms
- In the Quotation generator, enter only the actual rental lines: the tent, furnishings, lighting and setup.
- In ‘Notes and terms’, state the deposit, its amount and condition, for example ‘A refundable deposit of 600 SAR is payable on delivery and returned within 3 days of the tent being collected undamaged’.
- Say what can be deducted from the deposit for damage, so it does not become a dispute later.
- Create the file. The total now reflects the rental alone: 4,830.00.
When the deposit is paid and returned
When the client pays the deposit, issue a receipt for it from the Receipt generator, describing it as a refundable deposit for quote number such-and-such. The receipt proves you received the money without mixing it into the rental invoice. When you return the deposit, keep proof of the transfer.
When a line might still be right
- If the amount is not really refundable, such as a fixed cleaning fee, it is part of the price and belongs on a line.
- If the client wants to see everything payable on delivery day, write in the notes ‘Due on delivery: 4,830.00 rental + 600.00 refundable deposit’.
- How a deposit is treated for tax is a decision for you and your accountant; the tool calculates what you enter and gives no tax opinion.
Common questions
Can I list the deposit as a zero-priced line?
You can, but it will show 0.00 and not the amount. The notes are clearer because they carry both the figure and the condition.
Can tax apply to only some lines?
No. There is one tax rate, applied to the whole amount after any discount.
How much can the notes hold?
Up to 1000 characters, and your line breaks are kept.