Deposit invoice: definition, example, and why it matters

Separate from the final invoice — the deposit invoice is paid first, then credited as a line item on the final invoice. Keeps the accounting clean for jobs that span tax periods.

• Short definition. An invoice issued specifically to collect an upfront deposit.
• Category. Deposit invoice is a invoicing term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds deposit invoice into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does deposit invoice mean?

Separate from the final invoice — the deposit invoice is paid first, then credited as a line item on the final invoice. Keeps the accounting clean for jobs that span tax periods.

Related terms

• Deposit — An upfront payment that reserves the job or covers materials.
• Progress billing — Invoicing a long job in installments tied to completion milestones.
• Invoice — A document a business sends a customer requesting payment for goods or services.