In a commercial relationship, it is sometimes wise — or even necessary — to request partial payment before the full execution of a contract. That's where the comes in installment bill, one document at a time legally supervised and useful for cash management. But when should it be issued? And above all, How to write it well to remain in compliance with the law ? We're taking stock.
La installment bill is an official document that materializes the partial payment requested or received prior to the final delivery of a good or the completion of a service. It is an integral part of the billing cycle and is subject to the same legal obligations than a classic invoice.
Unlike a simple payment request or a signed quote, the deposit invoice has a accounting and fiscal value. It is mandatory as soon as an advance payment is required: this concerns both long services and sales requiring specific manufacturing or supply.
The advance payment invoice meets several challenges for businesses, artisans and self-employed persons:
Requesting a deposit as soon as the contract is signed allows validate customer commitment, especially for tailor-made or long-term projects. This limits the risks of cancellation or unpaid bills.
The deposit represents a immediate cash flow, useful for financing the first expenses related to the mission: purchase of raw materials, mobilization of a team, rental of equipment, etc.
Unlike an oral promise or a quotation, an installment invoice has a legal value : it can be used as evidence in the event of a dispute. In addition, once the deposit has been paid, the customer is bound to the contract (unless otherwise specified).
Here are the most common cases where an advance invoice is relevant or even recommended:
💡 Good to know : The request for an advance payment must be clearly provided for in general terms and conditions of sale (CGV) or in a contract signed between the parties. Without it, it may be more difficult to claim it.
The deposit bill is a Real bill, subject to VAT (if your business is subject to it) and all legal billing obligations. It must therefore include the mandatory information provided for by law:
Once issued, it must be registered in accounting just like a normal bill. The VAT collected must be declared upon receipt, unless you are subject to VAT on receipts (common for liberal professions, in particular).
Here are the best practices for creating a clear and legal installment invoice:
Example of formulation:
“Deposit invoice corresponding to 30% of the total amount of order no. 456 dated 02/05/2025.”
When the mission is completed or the delivery has been completed, it is appropriate to issue a final bill. This one should clearly mention the deposit already paid and take this into account in the total to be paid.
For example, if the total amount is €3,000 including VAT, and a deposit of €900 has been paid, the final invoice will show:
This ensures the traceability of payments and avoids any confusion with the customer.
These three concepts are sometimes incorrectly used interchangeably. Here's what sets them apart:
It is therefore crucial to specify in your contractual documents whether it is a Down payment Or ofDeposit, because the consequences in case of cancellation are not the same.
La installment bill is an essential tool for businesses that want secure their transactions and improve their cash flow. It makes it possible to obtain a financial commitment from the customer before the complete realization of a service or delivery.
But be careful: this document has a legal and fiscal value, and should be written carefully. As an entrepreneur, it is therefore crucial to comply with the obligations related to the issuance of an installment invoice, while keeping a clear record of the remaining balance to be invoiced.
Properly used, the advance payment invoice is much more than a simple administrative document: it is a Lever of trust, of litigation prevention And of effective financial management.
