Deposit
A deposit is an amount the customer pays before all goods or services are delivered. It may reserve time, fund initial costs or reduce the remaining balance. The agreement should state the deposit amount or percentage, when it is due, how it affects the final invoice and what happens if the work changes or is cancelled.
Why this matters when you invoice
A clear deposit structure gives both parties an agreed starting commitment and prevents confusion about how much remains to be invoiced or paid.
Where it appears on an invoice
Show the project total, deposit amount, amount already paid where relevant and remaining balance as separate labelled figures. Do not imply payment was received until it actually was.
Deposit example
A €2,000 project uses a 30% deposit. The upfront amount is €600 and the remaining balance is €1,400. The agreement states when each amount becomes due.
Common mistakes
- Calling an unpaid deposit “paid.”
- Showing the deposit without the remaining balance.
- Leaving refund or cancellation terms unstated in the agreement.
Put it into practice
Use the matching InvoiceCraftly resource to apply this concept, then review the result in the context of your invoice and agreement.
This page explains common invoicing usage. Your agreement and applicable local rules determine what applies to a transaction.
Frequently asked questions
Is a deposit always refundable?
No universal answer applies. Refund treatment depends on the agreement and applicable consumer, contract and tax rules.
How do I calculate a percentage deposit?
Multiply the total by the deposit percentage, then subtract that amount to find the remaining balance.