Deposit invoice template
A deposit invoice asks for part of the price before work starts. This template records the project, the contract total and when the balance falls due, and the deposit can be entered as received on the final invoice.
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What this template includes
- Your business name, address and contact details
- Customer name and address
- Document number and issue date
- Project
- Contract total
- Balance due when
- Line items with qty, amount and amount
- Tax, discounts, amount paid and balance due
Working out the deposit
Enter the deposit as a single line, or show the full contract price with a percentage line discount if you want the arithmetic visible. Put the contract total in the details so the customer sees what the deposit is part of.
Tax on deposits
Countries treat deposits differently. In the UK most advance payments create a tax point when received, while in Canada a true security deposit is not taxed until it is applied to the price. Check your rule and set the tax on the line accordingly.
Questions
How do I credit the deposit on the final invoice?
Create the final invoice for the full price and enter the deposit in the amount paid box. The invoice then shows the total, the amount already received and the balance due.
Is a deposit refundable?
Only if your terms say so. State clearly in the terms whether the deposit is refundable, and under what conditions, before the customer pays.
What percentage deposit is normal?
It varies by trade and job size; many small businesses ask for somewhere between a quarter and a half up front. Some places cap deposits for home improvement work, so check local rules.