How much, and when
The common shapes, in rough order of how often they are accepted without discussion:
| Structure | Fits | Watch out for |
|---|---|---|
| 30% up front, 70% on delivery | Projects of two to eight weeks | The 70% arrives after you have stopped working — the riskiest moment. |
| 30 / 40 / 30 by milestone | Longer builds | Define the milestone by a deliverable, not by a date, or a slipped week becomes an argument about money. |
| 50% up front | Small fixed jobs, new clients | Easy to administer; harder to ask for above about €5,000. |
| Monthly in arrears | Ongoing retainers | No deposit at all — the protection is the short billing cycle. |
The number matters less than the trigger. “30% on signature” is unambiguous. “30% up front” is a sentence two people can read differently.
What the deposit invoice must show
It is a real invoice: sequential number, both sets of details, date, VAT treatment. Two things it must also do that a normal invoice does not:
- Say what it is against. Deposit — 30% of quote Q-2026-014, brand identity. In six months that line is the only thing connecting the payment to the job.
- Charge VAT at the time of payment. In most European systems the tax point for a deposit is when it is paid, not when the project ends. That means the deposit invoice carries its own VAT, and it belongs in that quarter's return — not the quarter you deliver.
Netting it off the final invoice
This is where the arithmetic goes wrong. The final invoice shows the full value of the work, then the deposit already invoiced as a deduction. It does not show the remaining balance as if it were the whole job.
Brand identity — €6,000.00
Less deposit invoiced on INV-2026-0021 — −€1,800.00
Balance due — €4,200.00
Do it the other way — a second invoice for €4,200 with no reference to the first — and two things break. Your revenue for the year reads €6,000 in one place and €4,200 in another, and the client's accounts payable has no way to match the two documents to one job.
Part payments on one invoice
Different situation, same confusion. A client pays €800 against a €2,000 invoice. The invoice is not paid and it is not unpaid — it is partially settled, and it should say so rather than sitting in whichever bucket you last clicked.
Flowzivo records each payment with its own date and amount, shows the invoice as partial with €1,200 outstanding, and counts only the €800 as collected. The cash-flow forecast uses the balance, not the total, so a half-paid invoice does not quietly overstate what is still coming in.
Send the invoice instead of reading about it
The demo is the real product with example data in it. No account, nothing to install, and anything you add you can keep when you sign up.
No account to look around. Example data, and anything you add is yours to keep.
Questions
Is a deposit invoice the same as a proforma?
No, and the difference matters. A proforma is a request for payment with no accounting or VAT effect. A deposit invoice is a real invoice in your sequence with a real tax point. If you are unsure which your client expects, ask — some finance departments can only pay against a proforma, others only against an invoice.
When do I owe VAT on a deposit?
Usually when the deposit is paid, not when the project completes. That is why the deposit invoice carries VAT of its own. Rules vary by country and by what you supply, so confirm the treatment for your own situation before you rely on it.
What if the client cancels after paying the deposit?
That is a contract question, not an invoicing one. If your agreement says the deposit covers reserved capacity and is non-refundable, you keep it and the invoice stands. If you refund it, issue a credit note against the deposit invoice rather than deleting it.
Can Flowzivo turn an accepted quote into a deposit invoice?
Yes. An accepted quote becomes an invoice in one click, and the deposit percentage in your settings decides what the first invoice bills. The reference to the quote number is carried across so both documents point at each other.