Ask three different questions
An order records what has been committed to a supplier. An invoice requests payment for a stated amount. A payment records money that has actually moved. They may refer to the same purchase, but they describe different events.
Review three questions separately: what is the expected total cost, what has been invoiced, and what has been paid? Then look at the next due date. A project budget helps answer the first question; a payment schedule helps answer the others. Neither the order value nor the unpaid balance is automatically the amount due today.
Agree who pays each supplier
Record whether the client pays directly or the studio purchases under its agreed arrangement with the client. Name the person who approves the purchase and the person who follows up on payment. Keep the supplier order, any invoice references and the payment record connected to the same project item.
If the client pays directly, include that payment in the project's payment schedule where useful, but do not treat it as money passing through the studio's bank account. Keep design fees, supplier purchases and client reimbursements distinguishable. Their contractual and accounting treatment may differ.
Build a simple payment register
One line per payment instalment makes upcoming dates easier to review than a folder of PDFs. An order with a deposit and a final payment needs two scheduled payment lines, both linked to the same order. Record a planned payment as planned; a due date or a client's promise is not proof of payment.
- Project, supplier and order reference.
- Invoice reference, where an invoice has been issued.
- Instalment amount, currency and due date or agreed payment trigger.
- Payer and person responsible for following up.
- Status: planned, awaiting payment, part-paid, paid or disputed.
- Amount actually paid, payment date and reference.
Follow one purchase from deposit to balance
Suppose a lighting order totals €2,400 on an agreed, consistent tax basis. Its terms require a 30% deposit of €720 and a remaining payment of €1,680 before dispatch. The order is still worth €2,400 after the deposit is paid. The amount already paid is €720, and the remaining scheduled payment is €1,680. These are illustrative figures, not a recommended deposit or market price.
When the final invoice arrives, check whether it shows the full value less the deposit or only the remaining balance. Match it to the order and earlier payment. Do not record the full order, the deposit and the full final invoice as three separate project costs. Reconcile the documents with your accountant's posting method rather than using the project register to decide tax treatment.
Put dates beside the money
Group upcoming payments by week and keep expected receipts separate from confirmed funds. A cash-flow forecast concerns when money is expected to enter and leave an account, rather than just the project's overall cost. For studio cash planning, include only flows through the studio's account; client-direct purchases belong in the project schedule, not its bank forecast.
If the client is due to fund a supplier order after the supplier expects payment, flag the timing gap before placing the order. Review the next four to eight weeks as a working horizon, extending it for longer commitments. This interval is a practical review choice, not an accounting rule. Update a payment trigger when the delivery date changes, but retain the supplier's agreed terms.
Make the next action obvious
Review missing documents, payments approaching their due date, part-payments and disputed amounts once a week. Give each unresolved item a named owner and a next step. Before paying new or changed bank details, confirm them through a trusted contact route already on file, rather than relying only on the message containing the change.
In Formendi, keep recorded project costs and payments together, and use supplier orders for the commitments behind them. Explore the sample project before setting up your own process. Your accounting system remains the place for statutory records and tax reporting; the project workspace helps you see what needs attention next.