How to Show a Deposit and Remaining Balance on an Invoice
By InvoicePaw · Updated
On a final invoice, show the full job total, then subtract money already received and applied to that job. The result is the remaining balance due. A deposit is a payment toward the bill, not a discount on the work.
A promised deposit is not money received
Before recording an amount paid, check that the money actually arrived and belongs to this job. Keep the payment date and reference with your records. Do not subtract an expected transfer just because the customer said they sent it.
Asking for a deposit before starting work is a different document or stage from showing that deposit on the final invoice. This guide covers the final bill after a payment has been received and applied. It does not set a deposit percentage or say that every deposit is non-refundable.
Work from the full price to the amount still owed
Willowbend Garden Care has completed a fictional cleanup: six hours at $75, $80 of compost and an agreed $70 waste-removal charge. That adds up to $600 before tax.
Assume an Ontario GST/HST-registered supplier and a 13% taxable service. HST adds $78, making the final invoice total $678 CAD. A $200 deposit received on October 15 is now applied to the job, leaving $478 due.
Keep both figures visible: $678 is the total price including tax, and $478 is what the customer still needs to pay. Replacing the job total with $478 would hide how the earlier payment was used.
Willowbend Garden Care
Willowbend Garden Care Inc.
25 Briarwood Crescent
Toronto, ON, M4J 2L8
Canada
+1 416 555 0186
billing@willowbend.example
willowbend.example
Tax ID: 784216395 RT0001
Invoice
#307
CAD
Bill to
Taylor Brooks
83 Elmstead Road
Toronto, ON, M4L 2A6
Canada
+1 416 555 0137
taylor@customer.example
Invoice details
- Issue date
- Oct 22, 2026
- Due date
- Oct 29, 2026
- Status
- sent
- Autumn garden cleanup - 6 hours$450.00
6 × $75.00
- Compost supplied and spread$80.00
1 × $80.00
- Agreed green-waste removal$70.00
1 × $70.00
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Autumn garden cleanup - 6 hours | 6 | $75.00 | $450.00 |
| Compost supplied and spread | 1 | $80.00 | $80.00 |
| Agreed green-waste removal | 1 | $70.00 | $70.00 |
Payment instructions
Send an e-Transfer to billing@willowbend.example and include invoice #307 as the reference.
Notes
Fictional example, not payable. Garden cleanup completed October 22, 2026. A $200 deposit received October 15, 2026 is applied to this final invoice.
Terms
Payment is due by the date shown above.
Invoice #307 / Created with InvoicePaw
This Ontario example assumes a GST/HST-registered supplier and a taxable service subject to 13% HST. Prices, contact details and tax IDs are fictional. Your invoice uses your own details and applicable tax settings.
Keep payments separate from discounts
An agreed discount changes the price you charge. A payment settles part of that price. Recording a deposit as a discount can change the taxable amount and make the invoice disagree with your payment records.
In the garden example, the $200 is recorded below the $678 total as money paid. It is not a negative service line or a pre-tax discount. If you also agreed a genuine price reduction, show that separately and use the correct tax treatment.
What if there has been more than one payment?
Add only payments received and applied to this invoice. If the customer later pays another $150 on the same $678 bill, payments total $350 and the remaining balance is $328. Keep the individual payment records even if the invoice shows one combined amount paid.
If the payments exceed the final total, stop treating the result as a normal balance due. Check whether you owe a refund or should agree a credit with the customer. Do not silently lose the excess by showing only a zero balance.
Tax timing needs its own check
The invoice arithmetic does not establish when tax becomes payable. Canadian GST/HST guidance distinguishes a deposit from its later application to a purchase. Advance or progress payments and forfeited deposits need their own treatment. Calling a payment a “deposit” does not settle that question.
The example assumes the $200 is applied to the final invoice. Check the CRA guidance for your actual arrangement, or ask your accountant. US businesses should check the rules that apply to their state and transaction rather than adopting the Ontario example.
Include the payment when describing the invoice
When creating a draft in InvoicePaw, say how much is already paid as well as describing the work. Check the total and amount due in the preview before you confirm. InvoicePaw records the information you provide; it does not verify bank transfers or collect the balance for you.
Example text
Invoice Taylor Brooks at taylor@customer.example for the October 22 garden cleanup at 83 Elmstead Road. Labour 6 hours at $75/hour, compost $80, agreed waste removal $70. Apply the $200 deposit already received on October 15. Balance due October 29, 2026. The email and job are fictional.