Deposit invoice: 4 steps to split the remaining balance

Key takeaways

Each invoice platform documents its own controls for that sequence, so keep the routes separate rather than assuming one setup carries over. The points below summarize each tool’s documented behavior.

• Stripe sends installment reminders and shows customers a history of past payments Stripe. Use this to track the remaining balance after the initial deposit clears.
• In the Square developer example, the first payment request is a DEPOSIT using the percentage_requested field to request 50% of the total order amount Square. This illustrates how an upfront sum is defined in code. Square also says a deposit can be combined with installment payments.
• According to Square, the percentages of all installment payment requests must add up to 100% Square. Verify your split totals before publishing any schedule.
• Square sends reminders at 11:00 AM in the timezone of the invoice Square. Note this timing when planning follow-up communications with clients.
• Australian guidance states that by law, you need to keep most business records for at least 5 years business.gov.au. Store invoices and payment records together to meet this retention requirement.

These distinct behaviors mean you cannot apply one reminder or percentage rule across all tools. Check which platform you use to see if it supports automatic reminders or specific percentage calculations. If you use multiple apps, maintain separate tracking sheets for each to avoid mixing incompatible data formats. The goal is to ensure every dollar of the remaining balance is accounted for under the correct tool’s rules. Start by identifying whether your chosen software handles the deposit as a fixed amount or a percentage of the total. Then confirm how it calculates the subsequent installments. Finally, align your record-keeping method with the retention period required in your jurisdiction. For broader context on handling partial payments across different platforms, see Deposits and partial payments in 5 invoice tools.

Deposit invoice: the steps from deposit to remaining payments

The core workflow separates the initial payment from the rest of the amount due. You collect a deposit, then track what remains until the customer pays it in full. Stripe describes this structure as collecting a deposit followed by the remaining balance, or dividing the amount due into smaller installments over time to offer more favorable terms.

This two-part approach gives you a clear starting point and a defined path to the final balance. The deposit secures part of the value up front; the remaining payments close out the invoice. Keep the two amounts distinct in your records so you can see exactly how much is still owed after the first payment lands.

Write down the deposit and remaining payment amounts for one customer invoice, then identify the documented route for the tool you already use.

Check access, choose the deposit and map the installments

Before configuring a payment schedule, check whether your account has access to invoice payment plans. Stripe invites interest in early access to these plans, so do not assume the feature is available to your account. Stripe’s guide also shows how to set up and manage payment plans without any code using the Dashboard. This route lets you configure the upfront sum and subsequent payments directly through the interface rather than writing custom integration logic. For how other tools handle upfront payments, see Upfront payments and price approval in 4 tools.

Once access is confirmed, calculate the installment percentages on the correct financial base. According to the Square API Reference, when the payment request type is INSTALLMENT, the percentage applies to the order's total less the deposit, if requested. This distinction is critical for accurate bookkeeping. If you apply that percentage to the full order total instead, the calculated amounts will be incorrect. Subtract the deposit from the order total first; the resulting figure becomes the base for each installment's value.

To map the installments correctly, follow this calculation sequence: 1. Identify the total order value agreed upon with the customer. 2. Subtract the chosen deposit amount from that total. 3. Use the remaining balance as the denominator for your percentage calculations. 4. Assign percentages to each installment so they reflect their share of the remaining balance.

This approach ensures that the sum of all installment values, plus the initial deposit, equals the original order total. It prevents overbilling or underbilling during the tracking phase. Keep each tool's specific calculation rules separate, as different platforms may handle the math differently. For example, some tools might require you to input fixed dollar amounts for installments rather than percentages. Always check the specific help documentation for the tool you are using to see how it defines the installment base. Verify your numbers manually once before entering them into the system to avoid errors that could complicate later reconciliation.

Create the draft, then post or publish in your chosen tool

The documentation for “Create and Publish Invoices” describes a two-stage process where you first generate a draft and then activate it. According to Square, you begin by calling the CreateInvoice endpoint. This action creates a draft invoice for an order that must already exist and be created with the Orders API. During this initial call, you configure the payment schedule, recipient details, and other specific invoice settings. For more on schedule setup, see Invoice payment schedules: 4 tools for due date setup. The draft remains inactive until you take the next step. To begin processing the invoice, you then call the PublishInvoice endpoint. This transition moves the document from a static record into an active state where payment actions can occur. Keep these two distinct calls separate in your workflow; the draft configuration does not automatically trigger processing.

In Odoo’s “Down payments — Odoo 18.0 documentation,” the interface follows a similar pattern of creating a draft before confirming it. When you click the relevant button, a Create invoice(s) pop-up appears on screen. Inside this dialog, you select the option to create a Customer Invoice Draft page. This stage allows you to review the line items and amounts without sending the bill to the customer. Once the details are correct, you confirm the entry. Upon confirmation, the invoice’s status changes from Draft to Posted. This status change indicates the invoice is now live within the system. Note that the specific terminology differs between platforms: Square uses API endpoints like CreateInvoice and PublishInvoice, while Odoo uses UI actions like Create Draft and Confirm. Do not assume the button labels or endpoint names are identical across tools. Check your specific software’s interface to identify which action generates the draft and which one finalizes it.

Your task is to locate the exact control that initiates the draft phase in your chosen tool. For Square users working with the API, ensure the underlying order exists before attempting to create the invoice draft. For Odoo users, verify that the pop-up dialog opens correctly and that the Draft page loads with the expected data. If you are using a different platform, look for a similar “draft” or “pending” state that prevents the invoice from being sent until you explicitly approve it. This separation between creation and activation gives you a chance to catch errors before the customer receives the request. Review the configured payment schedule and recipient information during the draft stage. Only proceed to the publishing or posting step when every field matches your agreement with the client.

Deposit workflow reference table by publisher

The table below summarizes the documented deposit and payment steps for each publisher. Each row names the tool and lists the specific action or rule found in its documentation.

Use this table to identify which tool you are currently using and locate the specific step where your workflow begins.

Check reminders and retain invoice and payment records

Square’s Create and Publish Invoices documentation provides a specific reminder timing example for scheduled invoices. According to Square, the following CreateInvoice request directs Square to send the invoice on the scheduled_at date and send a reminder 1 day before the payment due date. This specific configuration shows how an automated reminder can be tied directly to the payment deadline within the API workflow. Check the invoice timezone setting if your customer operates in a different region, because reminders follow it. These details apply specifically to the documented API behavior; other tools may handle reminder scheduling differently.

For record-keeping, Australian business guidance offers clear retention standards. According to business.gov.au, by law, you need to keep most business records for at least 5 years. This requirement applies to business records generally, not just invoices. The same source says invoices and payment records together help you document the full payment process. Keeping these documents together creates a complete audit trail for each transaction. When you receive a deposit and later payments, retaining both the original invoice and the corresponding payment record allows you to verify the full payment history against the initial agreement. This practice supports accurate bookkeeping and tax reporting.

Recommendation: Store the invoice PDF and the payment record in the same folder or file structure named after the customer and project. If you use a digital invoicing tool, ensure it exports both documents with consistent naming conventions. Do not delete the original invoice even after the balance is paid; the five-year retention rule requires keeping these records for future reference. For businesses operating outside Australia, check your local jurisdiction’s specific retention laws, as the five-year guideline cited here is specific to Australian business guidance.

Action step: Locate one recent completed invoice and its matching payment record in your current storage system. Confirm they are saved together and note the date range covered by your existing archive to ensure it meets any applicable retention periods.

Related guides: Check 7 maintenance settings for smooth request flow.

FAQ: Deposit amounts, installments and tool access

How do I request a deposit invoice and track the balance?

Request the deposit first, then track each remaining payment against the agreed schedule, using the calculation steps above.

What does Square's deposit and installment example request?

For an order with a total amount of $100, the invoice would request a $50 deposit, followed by two installments of $25 each Square.

Can I follow the draft and posting steps in Odoo?

Yes. Click Create Draft to create a Customer Invoice Draft page. Odoo states that when you click Confirm, the invoice’s status changes from Draft to Posted. This workflow allows you to review the document before it becomes active.

How does Stripe describe access to its Dashboard payment plans?

Stripe invites interest in early access to invoice payment plans, and its guide describes setting up and managing payment plans without code using the Dashboard. Check whether your account has access before following the guide.