How to invoice for a deposit (with an advance payment invoice format)

Short answer: yes, you can invoice for a deposit. The simplest way is one invoice for the whole job that says how much is due now as a deposit and when the rest is due. The client pays the deposit first, and the same invoice then shows the balance still to pay. Some businesses send a separate deposit invoice instead. Both work.

Why ask for a deposit?

A deposit means the client has agreed to the work and you are not paying for it alone. It covers materials you buy before the job starts, protects a date you keep free for one client, and shows the client is serious. It is common for weddings, building work, design projects and anything booked weeks ahead.

Two ways to invoice a deposit

	One invoice with a deposit	A separate deposit invoice
How it works	The invoice is for the whole job and says how much is due now	One invoice for the deposit, then a final invoice for the rest
Documents	One	Two
Balance due	Shown on the same invoice after the deposit is paid	The final invoice subtracts the deposit already paid
Good for	Most freelancers and small jobs	Clients whose accounts team wants a separate invoice for each payment

If you use two invoices, write the deposit invoice's number on the final invoice and show the deposit as a line taken off, so the client can see nothing is charged twice.

Advance payment invoice format

An invoice that asks for a deposit should show:

• The invoice number and date.
• Your business name and contact details, and the client's.
• The whole job, line by line, with the total.
• The deposit amount and that it is due now (or by a date).
• When the balance is due.
• How to pay: bank, Wise, Payoneer or a pay link.
• Whether the deposit can be refunded if the client cancels.

For example:

Invoice INV-0051 · 31 October 2026
Wedding photography, full day: Rs 150,000
Total: Rs 150,000
Deposit: Rs 50,000 due now; the balance by 20 December 2026.
The deposit holds your date and is not refundable after 30 November 2026.

Deposits and tax

If you charge VAT or sales tax, a deposit can change when the tax is due. In the UK, HMRC's VAT guide (section 14.2.3) says most deposits are advance payments, and a payment received before the work is done creates a tax point when it arrives. A deposit held only as security, such as for hired goods that will be returned, does not. Other countries have their own rules, so ask your accountant how to treat deposits where you are.

How deposits work in Inbill (Pro)

Deposits are part of Pro ($5 a month). You add a deposit amount to the invoice itself. Your client then sees:

• On the invoice page behind the link: Deposit due now, and Deposit received once their payments cover it.
• On the PDF: "Deposit: Rs 50,000 due now; the balance by the due date."
• In the message Inbill writes when you send it on WhatsApp: "A deposit of Rs 50,000 is due now."

The deposit is part of the invoice total. When the client pays it, you record it as a normal part payment and the invoice shows the balance still due. You can add a deposit to a quote too: the client sees "Deposit to confirm" with the amount due when they accept. Duplicating an invoice does not copy the deposit, so each job asks for its own.

On the free plan you cannot add the deposit field (accounts made before 1 November 2026 keep it until 1 December 2026), but you can still write the deposit and the balance date in the invoice terms and record the deposit as a part payment when it arrives. Part payments are free on every plan.

After the deposit arrives

Thank the client and confirm the date or the start of work. When the job is done, send a short reminder about the balance with the same invoice link. For reminder wording, see payment reminder templates, and for clients who prefer chat, how to send an invoice on WhatsApp.