To invoice a deposit or advance payment, the process involves two steps: a deposit invoice, then a balance invoice.
First invoice: the deposit
When you request an advance payment from your client, you issue a deposit invoice. This invoice is subject to VAT, and the invoiced amount counts as income for the period.
👇 Example
Final invoice: the balance
Once the work is complete, you only invoice the remaining balance: the total amount, minus what has already been invoiced as a deposit.
💡 For clarity, show the total amount of the service on the final invoice. Then add a negative line "Deposit already invoiced" for the amount already billed as a deposit. This way, your client can see exactly what your service cost.
👇 Example
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