# Add a Deposit to an Invoice

Collect a deposit on an invoice without affecting totals, tax, or balance calculations—ideal for commissions and split payments.

Written by Kalila Richards  
February 3, 2026

## Overview

You can now add a **deposit** to an invoice to collect partial payment upfront while keeping a **single invoice number** for the full sale.

Deposits appear as line items on an invoice. They are **not taxed** but can be applied as payments toward the invoice over time.

This is especially useful for commissioned works, large projects, or any sale that requires a deposit and a later balance payment.

[Open video in Loom](https://www.loom.com/share/4df820545264485bac6e66056e8dfc62?source=embed_watch_on_loom_cta)

## Step 1: Open or create an invoice

Navigate to **Invoices**, then create a new invoice or open an existing one.

## Step 2: Add a deposit

Towards the middle of the invoice, locate the **Deposit** section.

You can enter the deposit in one of two ways:

- **Dollar amount** (for example, $2,500)
- **Percentage** of the invoice subtotal (for example, 50%)

## Step 3: Review the invoice totals

The invoice totals will remain unchanged:

- Subtotal and tax stay the same
- The full invoice total still reflects the total sale amount.

The deposit will appear separately as **Deposit Amount Due**.

## Step 4: Send the invoice and record payments

Once the deposit is received, it is applied to the invoice. When the balance is paid later, it will be reflected automatically without creating a second invoice.

## How Deposits Appear on the Invoice

On the invoice PDF and preview:

- The deposit appears as its own line
- Payments made toward the deposit are listed in the payment history
- Once fully paid, the **Deposit Amount Due** updates to **$0.00**

## Common Use Cases

- **Commissioned artworks** that require one invoice number for accounting
- **Large sales** where clients pay 50% upfront and 50% on delivery
- **Projects with milestones**, where payments are collected over time
- **International or institutional clients** that require deposits before production begins

## ❓ FAQs

**Q: Does the deposit affect the invoice total?**  
A: No. Deposits are tracked separately and do not change the subtotal, tax, or total.

**Q: Is tax applied to the deposit?**  
A: No. Tax is calculated only on invoice line items, not deposits.

**Q: Can I use a percentage instead of a fixed amount?**  
A: Yes. You can enter a percentage of the invoice subtotal, such as 50%.

**Q: Can I remove or change a deposit?**  
A: Yes. You can remove or update the deposit at any time before or after sending the invoice.

**Q: Does this replace the need for multiple invoices?**  
A: For many commission workflows, yes. Deposits allow you to collect split payments while keeping one invoice number.