Creating Deposit Invoices
Last updated: August 7, 2025
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Overview
Collecting a deposit upfront is a common business practice, especially for larger projects or custom work. It helps secure commitment and manage cash flow. This tutorial provides a detailed walkthrough of how to create deposit invoices, ensuring you can bill for partial payment before work commences and the remainder upon completion. We'll explore two effective methods: creating two separate invoices (one for the deposit and one for the final payment) or creating a single invoice and recording multiple payments against it.
Step-by-Step Instructions
Method 1: Creating Two Separate Invoices (Using Partial Invoicing)
This approach generates distinct invoices for the deposit and the final payment, each with its own invoice number and terms. This is ideal if you prefer separate tracking for each payment stage.
Navigate to your project and select the Invoices tab.
Click the + New Invoice button.
On the New Invoice screen, click the Partial Invoice button.
A Partial Invoice pop-up will appear. In the Total Percent field, enter the percentage you wish to collect as a deposit (e.g.,
50%). The amounts for each service line will adjust automatically.Click Save in the pop-up.
You can add a description in the Notes field on the main invoice, such as "Deposit Payment for Project X".
Finalize the invoice by clicking Send to QuickBooks. This is your deposit invoice.
When the project is complete and you're ready to bill the remaining amount, return to the project's Invoices tab and click + New Invoice again.
Click the Partial Invoice button. The system will typically default to the remaining percentage (e.g., the other 50%). Confirm this is correct.
Click Save in the pop-up.
Add a relevant description in the Notes field, like "Final Payment for Project X".
Finalize this second invoice by clicking Send to QuickBooks.
Insight: Using the partial invoicing feature for two separate invoices provides clear, itemized billing for both the deposit and the final payment, simplifying reconciliation and communication with your client.
Method 2: Creating a Single Invoice and Recording Multiple Payments
This method involves creating one invoice for the total project amount and then recording deposit and final payments against that single invoice.
Navigate to your project and select the Invoices tab.
Click the + New Invoice button.
The new invoice will default to the full project amount. Do not use the Partial Invoice button for this method.
In the Notes field, you can specify your deposit terms, for example, "50% deposit required before work commencement. Balance due upon completion."
Finalize the invoice by clicking Send to QuickBooks.
To record the deposit payment:
Open the newly created invoice from the list.
Click the Payments button (usually located at the top right of the invoice view).
In the Payments pop-up, click Record Payment.
Enter the Amount paid for the deposit.
Select the Payment method (e.g., Check, Cash) and fill in any other necessary details.
Click Send to QuickBooks. The invoice will now show the amount paid and the remaining balance due, often with a "Partially Paid" status.
To record the final payment once received:
Open the same invoice again.
Click the Payments button.
Click Record Payment.
Enter the remaining Amount paid. Some systems offer a "Use balance due" option to auto-fill this.
Select the Payment method.
Click Send to QuickBooks. The invoice status should update to "Paid".
Pro Tip: To save time, consider setting up default invoice notes in your system settings to automatically include your standard deposit requirement text on new invoices.
Troubleshooting
Incorrect Amount on Partial Invoice: If you're using Method 1 and realize the percentage or amount is wrong before finalizing, you can usually adjust it in the Partial Invoice pop-up. If the invoice is already created, you might need to void or edit it, depending on your system's capabilities, and then recreate it.
Payment Not Reflecting: Ensure you click the final save or send button (e.g., Send to QuickBooks) after entering payment details. If the payment still doesn't appear, refresh the page or check your payment processing system for transaction confirmation.
Unable to Find "Partial Invoice" or "Payments" Button: These features might be subject to user permissions or specific plan levels. Ensure you have the necessary access. Also, confirm you are in the correct screen or section for these options to appear.