A deposit is a commitment that creates obligations on both sides. The goal at this stage is not to decide the payment instrument or to deliver final approval for the full contract. It is to build a clear, time-stamped decision record that explains why the deposit is appropriate now, what it covers, and what will happen next. That record keeps the team aligned and creates a traceable file if the relationship changes.

Build one concise decision record

Start with a one-page decision record that anyone on the project can read in under two minutes. Put the deposit amount, currency, and the precise deliverable or milestone it secures at the top. State the date the deposit will be sent and the business reason for paying a deposit now rather than a full or no payment.

Next add who approved the deposit and their role or authority level. Note any financial approval thresholds that this payment triggers and whether the payment requires secondary sign-off. Attach or link the related quote, proforma invoice, or brief scope document so reviewers can see the source details without searching multiple systems.

• Deposit amount and currency
• Exact milestone or goods description the deposit secures
• Payment date planned and approval names
• Reference documents and links

Verify supplier identity and beneficiary details

Confirm the legal name and the payment beneficiary separately. The supplier may operate under a trading name but request payment to a different legal entity or third-party account. Ask for a written statement from the supplier that matches the proforma invoice beneficiary details to their legal entity and provide a business registration extract if available.

Collect beneficiary bank details and require the supplier to confirm them in writing. Record the exact account name, account number, bank name, bank branch, SWIFT or routing code, and the stated beneficiary address. If the beneficiary differs from the supplier, document the reason and any supporting contract clause or subcontractor agreement.

• Ask for a written confirmation that beneficiary details are correct
• Attach business registration or equivalent verification
• If beneficiary differs from supplier, capture the explanation

Lock the scope, milestones, and refund or cancellation terms

The deposit must map to a specific scope item and a measurable milestone. Define what will be delivered, acceptable quality criteria, and the date or production stage that triggers the next payment. If the deposit secures material procurement, tooling, or booking capacity, state that explicitly and document expected lead times.

Record refund, cancellation, and remedy terms for deposit scenarios. Note whether the deposit is refundable, refundable minus costs, or nonrefundable and under what conditions each applies. If the supplier provided a written refund policy or a clause in the proforma invoice, attach it to the decision record and summarize key points.

• Describe the exact milestone linked to this deposit
• Summarize refund policy and conditions
• Attach the clause or supplier statement that defines remedies

Confirm amounts, currency risks, and internal approval thresholds

Document the exact numeric amount in both the invoice currency and your accounting currency if different. Note who bears exchange rate risk between the payment date and when the supplier nets the funds. If you plan to make a partial deposit, record the remaining payment amounts and expected timing.

Record who authorized the payment within your organization and the approval evidence. If corporate policy requires two sign-offs or a finance checklist, capture that checklist as part of the decision record. Do not decide payment method here, but do document any internal controls that must be observed before you release funds.

• Amount in invoice currency and internal currency equivalent
• Exchange rate responsibility and expected conversion date
• Internal approvers and required documentation

Capture communications, evidence, and recipient confirmation

Attach every item of evidence to the decision record: proforma invoice, email thread where the supplier confirmed beneficiary details, screenshots of bank details, registration documents, and any inspection or sample approvals tied to the deposit. Store files with readable filenames and a clear folder path so future reviewers can find them quickly.

Request a timestamped confirmation from the supplier that they received the deposit when you send it. If the supplier cannot provide instant confirmation, document the expected method of receipt confirmation and the timeframe. Note who on your side will monitor payment status and receive the confirmation, and log the actual confirmation when it arrives.

• Attach proforma invoice and supplier written confirmations
• Save bank detail screenshots and registration extracts
• Log who will monitor payment and how confirmation will be recorded

Define the next decisions and triggers after the deposit

The decision record should end with clear next steps and decision triggers. Specify what evidence will trigger the next payment or release of goods: production photos, inspection report, shipping notice, or completion of tooling. Assign owners and deadlines for obtaining those items so the project keeps moving.

Also record escalation paths if expectations are not met. Decide how long the supplier has to cure a missed milestone before the buyer considers alternative actions. This creates a readable sequence: deposit paid, milestone expected by X date, review evidence by Y date, then next payment or remedial action.

• List the exact evidence that will unlock the next payment
• Assign owners and deadlines for evidence collection
• State escalation timelines and who will invoke them

Create and save the one-page decision record now with attachments and approver names.