Down payment invoice
A down payment invoice is an invoice for an agreed partial amount that becomes due before the full delivery of goods or completion of services. It is used to secure cash flow at an early stage and to support the financial handling of an order before the final invoice is issued. Unlike a partial invoice, it does not charge for work already performed, but records an advance payment towards the total order value. After the actual delivery or service has taken place, the down payment is taken into account in the final billing through down payment clearing. This keeps the outstanding amount, incoming payment and further invoicing transparent and properly traceable in receivables management, helping companies manage daily processing more reliably and in line with accounting requirements.
