What is a progress invoice? When is it due? How do you create this special invoice? This article explains the progress invoice—a type of invoice companies in the craft sector and the construction and public works (BTP) sector commonly use—that allows businesses to spread payments out over the course of long-term projects.

What’s in this article?

• What is a progress invoice?
  
• Why issue a progress invoice?
  
• What’s the difference between a progress invoice and a deposit invoice?
  
• When do you issue a progress invoice?
  
• How do you calculate the amount of a progress invoice?
  
• What information is required on a progress invoice?
  

What is a progress invoice?

A progress invoice—sometimes called an “interim invoice”—is an intermediate invoice used by professionals in the craft, building, and construction trades. It allows service providers to bill gradually as the work moves forward, particularly for projects lasting several weeks, months, or years.

Why issue a progress invoice?

For a business, the progress invoice offers a degree of financial security. Receiving payments as work progresses helps the supplier manage expenses for labor and raw materials. It helps maintain the company’s cash flow during the project, lowering the risk of unpaid invoices.

For the customer, the progress invoice provides visibility on the progress of the job. It allows them to monitor progress more easily and make payments in installments, which is especially beneficial for expensive long-term projects.

What’s the difference between a progress invoice and a deposit invoice?

A deposit invoice serves to establish a commitment between the customer and the supplier. It is issued by a company before work begins.

However, suppliers send out progress invoices at set intervals during the project based on the completion percentage (e.g., 10%, 20%, 50%, 75%, etc.). Before the project begins, both parties decide on an invoicing schedule, typically outlined in the work contract.

When do you issue a progress invoice?

Suppliers can issue progress invoices monthly or based on the work’s completion percentage. It all depends on the arrangement made between the customer and the supplier.

The final invoice, also called the balance invoice, is the last invoice issued by the supplier. It marks the completion of the work and shows the remaining balance due.

How do you calculate the amount of a progress invoice?

There are two ways of working out the amount of a progress invoice. The supplier can:

• Calculate the amount due based on the percentage of completed work in relation to the whole job.
  
• Calculate the amount due in stages or contracts (a method often used when several contractors are working on the same site). This approach involves billing progressively for each specific service as the work advances.
  

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What information is required on a progress invoice?

The progress invoice contains the same mandatory information as a standard invoice, including:

• Invoice information: Unique invoice number and invoice issue date
  
• Seller’s details: Full name or company name, Business Directory Identification System (SIREN) number or Establishment Directory Identification System (SIRET) number, the business’s legal form, the share capital amount, Trade and Companies Register (RCS) number for businesses, Trades Directory (RM) number for craftspeople, registered office address, and company value-added tax (VAT) number, if subject to VAT
  
• Customer’s details: Name or company name and billing and shipping address (if different)
  
• Transaction details: Purchase order number (if applicable) and date of sale or completion of the service
  
• Description of each good or service: Unit, quantity, type, brand, reference, materials supplied, and labor
  
• Pricing excluding VAT: Unit price of the goods or services, surcharges and discounts (if applicable), and total amount
  
• VAT information: VAT rate applicable to each item or the words “VAT not applicable, Art. 293 B of the French Tax Code” for businesses exempt from VAT, and the VAT amount
  
• Pricing including VAT: The amount inclusive of all taxes
  
• Payment terms: Due date, rate of late payment penalties in the event of nonpayment by the due date, and flat-rate fee for collection costs
  

It should also contain information specific to the current job, such as:

• The words “progress invoice”
  
• The quote number that corresponds to the progress invoice
  
• Designation of batches or contracts, if applicable
  
• Percentage of completion of the overall job and of the batch or contract, if applicable
  
• Amount of progress since the last due date and the amount already paid
  
• Details of deposit paid, if any
  

Companies and craftspeople in the construction and civil engineering sector must also include details on their invoices about their professional insurance, the insurer’s contact information, the contract’s geographical coverage, and subcontractor reverse charging, if applicable.