How do you show a partial payment on an invoice?
Keep the amount charged separate from the amount paid. Show the invoice total, the confirmed payments applied to it, and the remaining balance. A deposit already received is a payment, not a discount. These examples explain document arithmetic; the required timing and tax treatment of advance payments depend on your business and jurisdiction.
Worked example: 1,000 billed, 300 paid, 700 due
For a completed project priced at USD 1,000, a confirmed USD 300 deposit leaves USD 700 to collect. This example has no tax or discount. Keep the deposit date and transaction reference alongside the invoice so the customer can match their payment.
Invoice: INV-2026-041 Project design and delivery USD 1,000.00 Invoice total USD 1,000.00 Payment already received USD 300.00 Amount due USD 700.00 Notes: USD 300 received on 10 September 2026. Payment reference: DEP-041. Remaining USD 700 due 30 September 2026.
Enter it in Free Invoice Generator
Start with the charges represented by this invoice. In Items, enter the confirmed amount in Payment already received. The live preview calculates the balance. In Notes & payment instructions, record the payment date, reference and agreed remaining due date. Save a version and export a PDF before sending.
- Enter 1,000 as the project rate and 1 as the quantity for the example above.
- Enter 300 in Payment already received; do not also enter it as a discount or negative line.
- Check the currency, tax and discount independently of the payment.
- The Paid status is a manual label, not a bank confirmation.
What if the customer makes several payments?
The payment field holds a cumulative amount, not a transaction ledger. If the customer later pays another USD 200 against the same USD 1,000 invoice, update Payment already received to 500, not 200. The balance becomes 500. Keep a separate dated list of transactions and retain earlier saved versions.
10 September: deposit USD 300.00 20 September: second payment USD 200.00 Total payments applied USD 500.00 Remaining balance USD 500.00
Deposit, milestone invoice or partial payment?
A deposit is an advance payment. A milestone invoice bills an agreed stage of work. A partial payment settles only part of an existing invoice. Decide which records your agreement and accounting process require before creating them.
- One full invoice: apply confirmed payments to that invoice and show its balance.
- Separate milestone invoices: bill each stage once and apply its payments to the relevant invoice.
- Previously invoiced deposit: reference that record and reconcile it in your accounting process. Do not create a second collectible charge for the same deposit.
Should you send a receipt for the payment?
A receipt can acknowledge money actually received. For a USD 300 partial payment, create a receipt for USD 300 and reference the original invoice; do not label the entire project paid. Our receipt tool does not update the invoice or reconcile your bank automatically. Avoid converting a full invoice into a full-payment receipt when only a deposit arrived.
Final checks before sending
Compare the payment field with verified transactions, not a promise to pay or a pending transfer. Confirm that each payment was applied once, that the balance matches your records, and that the client can see what is still due. If payment exceeds the invoice total, this tool cannot represent a negative balance through its payment field; reconcile the overpayment separately instead of forcing the figures.