How to Write a Custom Order Invoice, With a Deposit and Balance Template

Short answer: a custom order invoice lists what you are making and the full price. It also shows every payment the customer has made and the balance still owed. Add your business details, the customer’s name, an invoice number and the date. Then say when the balance is due and how to pay. Send it once when the customer agrees the order, so they can pay the deposit. Send it again before the handover, so they can pay the rest.

A normal invoice is simple. You sell something, you ask for the price, and the customer pays once. A custom order is different. The customer usually pays a deposit first and the balance later. Sometimes they change the design in the middle, and the price changes too.

So a custom order invoice has one extra job. It has to show the full money picture. That means the total, what has come in and what is still owed. Most invoice templates online have no place for that. This guide shows you how to add it, with a worked example and a template you can copy.

Why custom orders need a different invoice

Custom orders are often paid in more than one part. That is where money gets lost. Nobody forgets the deposit, because the customer pays it when the order starts. The balance is easy to forget, because it comes at the end, when you are busy finishing the work.

WISMO’s own order data shows how often this happens.

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In the same data, 40 of the 435 priced orders with a payment recorded were paid in more than one instalment. The typical first deposit was half the price. The full method and its limits are on the order data page.

A clear invoice does not stop every late payment. But it puts the balance in writing, with a date, before the handover. Your customer cannot say they did not know.

Quote, invoice or receipt

These three papers do different jobs, and custom work often needs all three.

• A quote comes first. It says what you will make and what it will cost. The customer has not agreed yet. Our guide on how to price custom orders helps you set the number.
• An invoice asks for payment. It says how much is owed, by when and how to pay.
• A receipt confirms a payment that has already happened.

For a custom order paid in parts, one invoice can do the work of the receipts too. Each time the customer pays, you add the payment and send the invoice again. It then shows every payment made and what is left.

What a custom order invoice must include

In the UK, GOV.UK publishes a list of what an invoice must include. The list starts with a unique number, your business name and contact details, and the customer’s name and address. It then asks for a clear description of what you charge for, the supply date and the invoice date. Last come the amounts charged, VAT if it applies and the total owed. That is a good base wherever you sell. PayPal’s checklist for US businesses adds two things. Show taxes, fees and discounts as separate lines. Add payment terms, such as the due date and the payment methods you accept.

For a custom order, use these 12 parts:

1. Your business name and contact details. Use the name your customer knows, plus a phone or email.
2. The customer’s name and contact details. Add an address if you ship.
3. A unique invoice number. Number your invoices in order, such as INV-1001, INV-1002. Matching the invoice number to the order number makes both easy to find.
4. The invoice date. This is the day you send it.
5. A clear description of the work. Write what you are making in plain words, such as “Silver ring, size 7, oval blue stone.” Your customer should recognize the order from this line alone.
6. Each item, with quantity, price and amount. List extras as their own lines, such as rush work, engraving or delivery.
7. The order total. This is the full price of the whole order, before any payment.
8. Tax, if you charge it. Show it as its own line. See the section on tax below.
9. Payments received. List each payment with its date, method and amount. This is the part most templates leave out.
10. The balance due. The total minus every payment received.
11. When the balance is due. Give a date or an event, such as “before pickup on November 14”.
12. How to pay, and a short note on your terms. Name the methods you accept. Add one line on your deposit and cancellation terms, or a link to them.

How to show the deposit and the balance

Show the full order total first. Then list each payment under it and subtract them. The last line is the balance due.

Here is a worked example for a made-to-order ring. The numbers are invented to show the method.

This layout answers your customer’s three questions at once. What does the whole order cost? What have I paid? What do I still owe? Show the full total, not just the balance. Then the deposit looks like what it is. It is part of the price, not an extra charge.

The deposit here is about half of the first price. That is common, but it is not a rule. Our guide on how much deposit to take explains how to work out your own number. The free advance payment calculator does the sum for you.

One invoice or two?

There are two common ways to invoice a custom order. Both work.

One invoice, sent again after each payment. You make one invoice for the full order. You send it when the order starts, so the customer can pay the deposit. When the deposit arrives, you add it as a payment and send the same invoice again with the new balance. This is simple, and the customer always has one up-to-date paper.

A deposit invoice, then a final invoice. The first invoice asks only for the deposit. The final invoice shows the full total, takes off the deposit and asks for the balance. Larger businesses often do this, and many invoicing tools support it.

Pick one way and use it for every order. Mixing them is how sellers end up asking for the same money twice, or not at all.

When to send each invoice

Timing matters as much as the invoice itself. Here is a simple order of events that works for most custom work.

1. The customer agrees the design and the price. Send the invoice with the deposit due. Say that work starts when the deposit arrives.
2. The deposit arrives. Record it on the invoice and send the updated copy. It now works as the customer’s receipt.
3. Something changes. If the customer adds to the order, update the invoice the same day. See the next section.
4. A few days before the handover. Send the invoice again with the balance due. Say plainly when and how to pay. For example: “Your ring is almost ready. The balance of $275 is due before pickup on Friday. You can pay by card or bank transfer.”
5. The balance arrives. Record the payment and send the final copy, marked paid.

The fourth step is the one sellers skip. Asking for the balance at the door feels awkward. It is also easy for the customer to say “I will send it tonight.” Asking a few days before gives them time to pay. Is a balance already late? Our guide on what to do when a customer won’t pay has polite reminders.

When the customer changes the order

Custom orders change. The customer wants a bigger size, an extra color or a faster date. Each change should reach the invoice the same day it is agreed.

• Add the change as its own line, with the date you agreed it. Do not quietly change the first price. A separate line shows your customer exactly what they added.
• Show the new total and the new balance. The payments already made stay the same.
• Send the updated invoice with a short message: “I have added the engraving for $35. Your new balance is $275.”
• Keep the same invoice number, or add a revision mark such as INV-1042-R1 if your records need to show each version.

Write down the change in your chat with the customer too. Your custom order terms should say how many changes are included and when changes cost extra.

Payment terms that help you get paid

Payment terms are the line that says when the money is due. Keep them short and specific.

• Use a date or an event, not “soon”. “Due before pickup on November 14” is clear. “Balance due on completion” leaves room for doubt about when completion is.
• Name every way you accept payment. If you take bank transfer, say what details the customer needs. If you take card, include the payment link.
• Link your deposit and cancellation terms. The invoice is not the place for every rule. One line and a link are enough. Our guide to handling order cancellations shows how to word them.
• Be careful with late fees. Put any late fee in your terms before the order starts. Do not add one to an invoice later. If you plan to charge one, check the rules where you sell.

Invoicing tools that take part payments

If you want customers to pay by card from the invoice, a payment tool helps. Two common ones handle custom work in different ways.

Square Invoices lets you request a deposit on an invoice. On paid Square plans, you can also split the balance into up to 12 milestone payments. Square says payment schedules cannot be used together with late fees.

PayPal Invoicing has no setup or monthly fees. You pay a fee when a customer pays online. An invoice can allow partial payments, and you can set the smallest amount a customer may pay each time. PayPal says partial payments are not available to users in India, Brazil or Israel.

Both tools take the payment for you. That is useful, but it is not required. Many small sellers take payment the way they already do and record it on the invoice by hand.

Sales tax and keeping records

Tax is the part that depends most on where you are.

Sales tax. In the US, the rules are not the same everywhere. The SBA says tax laws vary by location and business structure, and it lists each state’s tax agency. Whether you must charge tax on a custom order depends on your state and what you sell. Your state’s revenue department is the place to check. If you charge sales tax, show it as its own line on the invoice. In the UK, show VAT only if you are VAT registered.

Records. The IRS lists invoices as supporting documents for your business records, alongside receipts, deposit slips and paid bills. It says to keep records for 3 years in most cases, and longer in some situations. A numbered set of invoices, one per order, makes this easy. You can find any order by its number, and you can see what each customer paid and when.

This guide is general information, not tax or legal advice. If you are unsure, ask an accountant in your state or country.

A custom order invoice template you can copy

Change the parts in brackets. Delete the lines that do not apply. You can paste this into a document, a spreadsheet or the notes in your invoicing tool.

Common mistakes on custom order invoices

• Showing only the balance. Without the full total and the payments, your customer cannot check your sum. Show all three.
• No due date for the balance. “Pay when ready” invites a delay. Give a date or a clear event.
• Changing the price without a new line. A new total with no reason looks like a mistake. Show the change and its date.
• Reusing invoice numbers. Two orders with the same number cause confusion later, at tax time most of all.
• Waiting until the handover. Send the balance invoice a few days before, not at the door.
• Different invoice styles for different orders. One template for every order is faster to fill in and easier for you to check.

How WISMO does this

You can do everything above with a template and your notes. WISMO is one way to keep the invoice and the order in the same place on your phone.

Each order in WISMO holds the items, the price, the due date and every payment you record. You can record a deposit, part payments and the final payment, and WISMO works out the balance. From the order screen, you can download the invoice as a PDF to share. You can also email it to your customer if you have their email address.

The invoice shows your business name and contact details, and the customer’s details. Its number matches the order number, such as INV-1042 for order #1042. It lists the items, their prices and the due date. Under that, it lists every payment with its date, method and amount. The last lines are the total paid, the balance due and the payment status. You can make a new copy at any time, so it always shows the latest payments.

Invoices are free on every plan. Your first 30 orders are free, and Pro is $9.99 a month or $99.99 a year if you need more. Each order also has a tracking link, where your customer can see the order’s progress and payment status.

There are a few honest limits. WISMO does not take payments, so your customer still pays you the way you already accept money. The WISMO invoice also has no sales tax line and no space for your own terms. Do you charge sales tax, or need your terms on the invoice? Then use a tool such as Square or PayPal for the invoice. Send your terms with the order either way. For keeping payments straight across many orders, see customer payment tracking.