How to calculate the balance after a payment
For a straightforward invoice with no credits or refunds: balance due = invoice total − prior allocated payments − current payment. Use the same currency for every figure and round using the precision applicable to that currency.
For a USD 1,200 order, no prior payments and a USD 300 deposit leave USD 900 due. A later USD 900 payment brings cumulative payments to USD 1,200 and the balance to zero. Each receipt should identify its own payment amount.
What to write on an advance receipt
Describe the purpose plainly: “USD 300 deposit received toward furniture order ORD-1042; USD 900 remains due.” Include the order reference, payment method and date, then record any agreed milestone for the next payment.
Keep refundability and cancellation terms in the agreed order or contract and reference them where useful. The receipt records the payment; it should not introduce new terms the customer never agreed to.
How the supplied wholesale receipt handles an advance
The AED sample starts with an invoice total of AED 65,507.40. It subtracts an earlier AED 32,750 advance, leaving a final payment of AED 32,757.40. Those payments add up to the invoice total.
The image contains an illustrative 5% tax calculation and sample future-dated details. Use it to understand the arithmetic and layout, then check the tax treatment and actual dates for your own transaction.
Credits, overpayments and canceled orders
If a credit reduces the invoice, include that adjustment before deciding what remains due. If payments exceed the adjusted amount owed, identify an overpayment and agree whether to refund it or allocate it elsewhere.
Preserve links among the original invoice, deposit receipt, subsequent receipts and any refund record. Rewriting the deposit amount later hides the payment history.
Illustrative business scenario
Furniture order: deposit and delivery balance
A furniture shop accepts a deposit on a USD 1,200 order. The customer pays USD 300 now; delivery and the remaining payment will happen later.
| Invoice total | USD 1,200.00 |
|---|---|
| Earlier allocated payments | USD 0.00 |
| Amount received in this receipt | USD 300.00 |
| Remaining balance | USD 900.00 |
Issue a deposit receipt for USD 300 and show USD 900 still due. On final payment, create a separate receipt referencing the same order or invoice; do not rewrite the deposit as a full payment.