Manage invoice deposits and payment schedules
- Sellers with the invoices permission to view, edit, create, and delete invoices and estimates. Set permissions in Square Dashboard.
- Square Invoices Plus subscribers can set up milestone payment schedules.
About deposits and payment schedules
With Square Invoices, payment schedules give you more control over how your customers pay. You can schedule the initial deposit and split the remaining balance into multiple payments.
Before you begin
You can set up a payment schedule from your Square Dashboard, Square Invoices app, and Square Point of Sale app.
Deposits and item inventory
An item won’t be reduced in quantity until the invoice is paid in full. Paying the deposit won’t change the item counts.
You can request a deposit and partial payment per order total. The ability to split specific items for partial payments is unavailable at this time.
Milestone payment schedules
With Square Invoices Plus, you can schedule multiple payments for any job or project by setting up a payment schedule based on specific milestones or phases of a job.
You can set up to 12 milestone payments on an invoice. This does not include the initial deposit on the invoice (if a deposit was required).
With progress invoices, sales are not recorded within Sales Reports until the entire Square Invoice is fully paid. Sales are attributed to the date the invoice is paid off – not the deposit or the date the invoice was sent.
Set up payment schedules
- Sign in to your Square Dashboard and click Payments > Invoices > Create invoice.
- Add a new or existing customer to the sale.
- Add invoice details and line items.
- Click Add Payment Schedule.
- Toggle on Request Deposit and/or Split Balance into milestones.
- Under Deposit request, click Percentage (%) or Amount ($).
- Choose the due date and payment reminders.
- Click Save when finished, and click Send to send it to your customer.
- From the Invoices app, tap Invoices > (+). From the Square POS app, tap ≡ More > Invoices > (+).
- Add a new or existing customer to the sale.
- Add invoice details and line items. Add a discount, if applicable.
- Select Add Payments Schedule.
- Toggle on Request Deposit and/or Split Balance.
- Enter the amount or percentage you have scheduled, and select a due date.
- Select Save when finished, and select Send to send it to your customer.
Edit a deposit
You can edit a Square Invoice at any time from your Square Dashboard, even after a partial payment has been made. To do so:
Sign in to your Square Dashboard and click Payments > Invoices.
Select an invoice.
Click Edit > Deposit to edit the deposit amount or change the due date.
Click Send.
Refund a deposit
If you need to refund a partial payment on an invoice that is not fully paid yet, you will need to cancel the invoice. Once the invoice is canceled, the transaction will appear in your transactions list, where you can manage customer refunds.
Partial payments on a canceled invoice will also appear in your sales reports as a Custom Amount paid, and will not affect your inventory counts since the invoice was canceled. If you made manual adjustments to your inventory, make sure you account for that change when canceling an invoice.
View your invoice deposit reporting
When your customer makes a deposit payment or a progress payment on an invoice, those funds will be deposited to your account but that money won’t appear on your transactions report until the invoice is paid in full. Once the invoice is completely paid it will be marked as Done, and the amount paid will appear as one line item in your Sales report.
Even if only a down-payment is paid toward the invoice, the report will reflect the full amount of the invoice in the Transfers Report. The total column will reflect the amount of the down-payment paid, and the net total will not match the amount of the down-payment.
You can view these reports in three separate places on your Square Dashboard:
Transactions: A transaction for the invoice will not appear until the invoice is fully paid off.
Balance: The partially paid amount will appear on the day the partial payment was made.
Sales summary: A sale is not recognized until the invoice is fully paid so the invoice amount will not appear until the invoice is fully paid.