Request Deposits with Square Invoices
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With Square Invoices, you can request payment for a portion of your invoice upfront as a deposit, and set a separate due date for the remaining balance. With these deposits, you can create a single invoice to track multiple payments and reduce the amount of time you have to spend reconciling multiple payments.
Request Deposits
You can send an invoice requesting a deposit payment directly from your Square Dashboard.
To do so:
Go to Payments > Invoices in your online Square Dashboard > Create Invoice.
Select a customer from your Customer Directory, or enter a new name and email address.
Under Line items, select Customise to add items, and apply modifiers, notes and taxes.
Under Add payment schedule, click Request Deposit and enter the amount or percentage, select a due date and click Save. Deposits can be requested with a fixed amount or as a percentage of the invoice total.
Click Send.
Once your customer receives the invoice, they can pay the deposit first, then the remaining balance.
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.
Note: If you use Square to track your inventory, your items will only adjust when the entire invoice is paid. Paying the deposit won’t change the item counts.
To request a deposit from the Square app:
Tap More from the navigation bar at the bottom of your screen and select Invoices > Create Invoice.
Select a customer from your Customer Directory, or enter a new name and email address.
Under Line items you can add items, and apply modifiers, notes and taxes.
Tap Request Deposit and enter the amount or percentage. Select a due date and tap Save.
Click Send.
Edit an Invoice 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:
Go to Payments > Invoices in your online Square Dashboard and select an invoice.
Select Edit > Deposit to edit the deposit amount or change the due date.
Select Send.
Record Payments
Once a payment has been made, you can record the payment in your online Square Dashboard and Square app.
From your Square Dashboard:
Go to Payments > Invoices in your online Square Dashboard and select an invoice.
Scroll down to the Payments section and click Add Payment.
Click Record Payment > select a payment method.
From your Square app:
Tap More from the navigation bar at the bottom of your screen and select Invoices. Then, select an invoice.
Scroll down to the Payments section and click Add Payment.
Click Record Payment > select a payment method.
Note: The option to record a payment is currently only available on iOS.
The ability to accept in-person payments towards a deposit or partial balance is currently unavailable. In-person payments can only be taken for the total invoice amount. If a deposit is already paid on the invoice, the Record Payments option will be unavailable.
If you need to charge a card, a workaround is to send your customer a link via email to pay with Apple Pay, Google Pay or a credit or debit card.
View Invoices with Deposits From the Square App
You can view any existing invoices with partial payment and the latest statuses of those invoices from the Square app. You can also take payment for the entire invoice from the app.
Note: You can request deposits, take a payment for a deposit, and manage or edit an invoice solely from your online Square Dashboard.
To view invoices on the Square app:
Open the Square app.
Select More > Invoices and tap an invoice from your list.
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 cancelled, the transaction will appear in your transactions list, where you will be able to follow the steps to issue a refund.
Partial payments on a cancelled invoice will also appear in your sales reports as a Custom Amount paid, and will not affect your inventory counts since the invoice was cancelled. If you made manual adjustments to your inventory, make sure you account for that change when cancelling an invoice.
Sales and 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.
A partially paid amount will not count as a sale until the invoice is fully paid off in the Sales Report. View invoice reports in three separate places on your online Square Dashboard:
Transactions: A transaction for the invoice will not appear until the invoice is fully paid off.
Balance > Transfer Report: The partially paid amount will appear on the day the partial payment was made.
Sales Report: A sale is not recognised until the invoice is fully paid so the invoice amount will not appear until the invoice is fully paid.
A few other things to take into consideration:
An item won’t be reduced in quantity until the invoice is paid in full.
Partial card payments taken will be deposited according to your current deposit schedule.
Partial cash or other tender payments marked as such on the invoice won’t be reflected in Reporting until the entire invoice is paid in full.
To view partial invoice payments, go to the Deposits tab of your online Square Dashboard and click Deposit Reports. Then, select the date you would like to view.
Use the Invoices page to review payments made against a partially paid invoice.
Note: Sales may not show up correctly in third-party accounting integrations like Quickbooks and Xero.