Guide · Payments
Partial payments: deposit, installments and balance invoices
Splitting a project into payments is normal. The invoice has to show the full price, what has been paid and what is still due — otherwise the client cannot tell whether they are being charged twice.
Three ways to split a payment
| Model | What it covers | Typical invoice |
|---|---|---|
| Deposit | Part of the total, paid up front | Full total, amount paid, balance |
| Installment | A fixed amount at set dates | One invoice per installment |
| Milestone | A phase or deliverable | Invoice when the milestone is accepted |
Show the full total
Do not reduce the line items to the remaining balance. Put the full project price in the lines, add an “Amount paid” line for what has already been received, and show the “Balance due.” The client can then check the price and the payment history in one place.
One invoice per installment
For a payment plan, issue a separate invoice for each installment with its own number and due date. Reference the original project or invoice so the client’s AP team can match them. A single invoice with a payment schedule is acceptable for a small project, but separate invoices are easier to pay and reconcile.
Do not double-bill
The most common error is charging the deposit twice: once as a line item and again by leaving it out of the total. Keep one source of truth — the project total — and show payments against it. If a client cancels, the contract should say whether the deposit is refundable, transferable or forfeited.
If an installment is late
Send a specific reminder for the missed installment, not a generic statement. If the contract allows, pause work until it is caught up. A late fee clause only helps if it was agreed before the work started.
Contract wording
Put the payment schedule in the quote or contract: the deposit, each installment date and amount, and what happens if a payment is late. “50% on signing, 25% at design approval, 25% at launch” is clearer than “payments on a schedule.” The invoice then references the schedule instead of inventing a new one.
Example
| Invoice | Amount | Status |
|---|---|---|
| INV-1001 — deposit (30%) | $1,500 | Paid |
| INV-1002 — milestone 2 (40%) | $2,000 | Due Nov 20 |
| INV-1003 — final (30%) | $1,500 | Not issued |
The deposits and retainers guide covers the deposit wording; the blank invoice has an amount-paid line for the final invoice.
Related
Deposits and retainers
Show the deposit, deduct it and avoid double-billing.
Deposit vs retainer vs milestone
Three ways to split a payment, and how to invoice each.
How to write a late fee clause
Rate, start date, wording and state-law caveats.