Do you want to finalize an invoice for a customer who made a deposit? Have you issued several invoices during a long-term service contract? Then you need to issue a balance invoice, which is a definitive invoice that concludes your business engagement. Discover what businesses need to know about the balance invoice, including its definition, mandatory information, creation, and much more. You will also find a downloadable template toward the end of the article.

What’s in this article?

• What is a balance invoice?
  
• When to issue a balance invoice
  
• What is the difference between a balance invoice and a deposit invoice?
  
• What is the mandatory information on a balance invoice?
  

What is a balance invoice?

A balance invoice (or “settled invoice”) is a definitive invoice used to close a commercial transaction between a customer and their supplier. It confirms the final delivery of goods or the completion of a service in its entirety. The balance invoice summarizes all payments already made and indicates the remaining balance.

When to issue a balance invoice

The balance invoice is issued at the end of a long-term project or a significant delivery if the customer has already made a partial payment (such as a deposit or an installment) during the financial engagement. These partial payments are accompanied by a deposit invoice or several progress invoices.

The balance invoice is, therefore, the last invoice issued by the supplier. It is issued upon final delivery or when the service is fully performed.

What is the difference between a balance invoice and a deposit invoice?

The deposit invoice is issued before the business delivers the product or performs the service. It guarantees the seller an initial partial payment and allows them to cover initial costs they might incur. The deposit amount is then deducted from the total amount.

The balance invoice, on the other hand, is only issued at the end of the service or upon the delivery of goods. It constitutes a final request for payment and indicates the amount to be settled after subtracting the deposit and any installment payments.

You can simplify your invoicing system with Stripe Invoicing, a solution integrated with your existing tools that optimizes the creation, customization, and settlement of all your invoices (all without a single line of code).

What is the mandatory information on a balance invoice?

The balance invoice is subject to the same legal obligations as a standard invoice. Therefore, each balance invoice must include:

• Invoice number
  
• Invoice issue date
  
• Seller’s identity, including their first and last name or their company name, their Business Directory Identification System (SIREN) or Establishment Directory Identification System (SIRET) number, the legal form of the company, the amount of share capital, the Trade and Companies Register (RCS) number for businesses or the Trades Directory (RM) number for craftspeople, and the address of the registered office
  
• Customer’s identity, including their name or company name and their billing and delivery addresses, if they differ
  
• Value-added tax (VAT) numbers of the taxable companies (if applicable)
  
• Purchase order number (if applicable)
  
• Date of sale or service
  
• Detailed description and breakdown of each item sold or service provided, including the unit, quantity, nature, brand, reference, materials provided, and labor
  
• Unit price excluding tax (HT) of each item or service
  
• Any price increases or discounts (if applicable)
  
• Total amount HT
  
• VAT rate applicable to each item or the statement: “VAT not applicable, Art. 293 B of the General Tax Code (CGI)” for nontaxable companies
  
• Amount of VAT
  
• Amount including all taxes (TTC) (i.e., the balance of the invoice)
  
• Payment terms and due date
  
• Late payment penalty rate in the event of nonpayment by the due date
  
• Amount of fixed compensation for recovery costs
  

It must also contain specific details, such as:

• The words “balance invoice”
  
• The quote number (if one was established)
  
• A summary of all payments already made, including amounts paid, invoice numbers, and payment dates
  

You can download our balance invoice template to help you create your own. This is an invoice with a deposit already made.