A partial invoice is used when payments for an order are made in multiple stages, such as advance payments, deposits, or installment payments. Instead of issuing a single invoice at the end of a project or delivery, this method allows for progressive invoicing throughout the process.
With the partial invoicing module in Xentral, multiple partial invoices can be created from an order and later consolidated into a final invoice. This ensures compliance with tax regulations by transparently listing all previously made partial payments in a table below the item list.
This approach is particularly relevant for businesses that need to bill long-term services or large orders while allowing customers to pay in multiple installments. It provides transparency for both parties and ensures that all payments are correctly documented until the final invoice is issued.
The Partial Invoicing Module in Xentral provides the following functions:
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Create partial invoices directly from an order.
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Record multiple partial payments with a detailed breakdown.
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Automatically generate the final invoice, incorporating all previous partial payments.
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Tax-compliant overview of already paid amounts and the remaining balance.
Caution
A partial invoice alone is not a full invoice but a record of a partial payment, which is fully reconciled in the final invoice.
Before using partial invoicing, ensure compliance with your local tax regulations by consulting your tax advisor or the relevant tax authority.
A partial invoice is based on an existing order and allows for the billing of installment payments. Depending on the use case, items from the order can be carried over, or specific items can be defined for the partial payment. The following section explains the step-by-step process of creating a partial invoice.
For a partial invoice, you can either use items from the order or create a new item specifically for the partial payment (e.g., "Partial Payment 50%"). Quantity and price can be adjusted as needed. The choice depends on the business model—whether billing is based on unit quantities, machinery, or custom-made products.
A partial invoice is based on an existing order. Therefore, an order must first be created for the customer.
Steps:
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Navigate to Sales > Order > +NEW.
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Select the customer and add the items for the delivery or service.
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Save the order and release it.
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In the 'Partial Invoice' tab, you will later see an overview of all related partial invoices. From there, you can create both partial invoices and the final invoice.
Once the order is created and released, the first partial invoice can be generated from it.
Steps:
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Open the order and click on "Generate Partial Invoice".
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Enter a name for the partial invoice (e.g., "Deposit 1" or "Partial Payment Project XY").
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(Optional) Choose whether to transfer the positions from the order. These will appear with quantity 0 to prevent premature VAT calculation.
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Select the item for the partial payment that should appear on the invoice.
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(Optional) Adjust the item name, description, quantity, and price if needed.
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Click "Create" to generate the partial invoice.
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Use "Preview" to review the draft invoice.
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Send the partial invoice to the customer.
|
Field Name |
Description |
|---|---|
|
Partial Invoice Name |
Name that appears on the partial invoice, e.g., '1st Partial Invoice,' '2nd Partial Invoice,' etc. CautionBefore creating a partial invoice, check applicable tax regulations with your local tax office or accountant. |
|
Adopt Positions: All positions from the original invoice with quantity 0 |
The positions from the order are carried over with their price but with a quantity of 0. This ensures that VAT is not applied prematurely while keeping the items visible in the partial invoice for reference. |
|
Item for Partial Payment |
Selection of an item to be listed as the position for the partial payment in the partial invoice. |
|
Item Name |
(Optional) If different: Name of the item as it should appear on the partial invoice. |
|
Item Description |
(Optional) If different: Description of the item as it should appear on the partial invoice. |
|
Quantity |
(Optional) If different: Quantity of the item as stated in the partial invoice. |
|
Price |
(Optional) If different: Price of the item as stated in the partial invoice. |
The final invoice consolidates all previously issued partial invoices and presents the final invoice amount. Once all partial invoices have been created, the final invoice can be generated.
Steps:
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Open the related order and navigate to the 'Partial Invoices' tab.
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Click on 'Create Final Invoice.'
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The final invoice includes an overview of all previous partial payments and the remaining balance.
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Save and review the invoice in the preview.
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Send the final invoice to the customer.
|
Field Name |
Description |
|---|---|
|
Create Final Invoice: Final Invoice Label |
Name displayed on the final invoice, e.g., 'Final Invoice'. CautionBefore creating the final invoice, ensure compliance with applicable tax regulations by consulting your local tax office or financial authority. |
The final invoice provides an overview of all previous partial payments, allowing the customer to clearly see which amounts have already been paid and which are still outstanding.
Example Display on a Partial Invoice:
|
Document Number |
Paid |
Incl. VAT |
Outstanding |
|---|---|---|---|
|
1st Partial Invoice 400056 from 20.01.2025 |
71,39 |
11,40 |
|
|
2nd Partial Invoice 400159 from 22.02.2025 |
35,70 |
5,70 |
|
|
Total (all amounts in EUR) |
107,09 |
17,10 |
178,46 |
Note
The final invoice includes:
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A complete list of all previous partial payments, ensuring transparency of the total amount paid and the remaining balance.
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A record of all payments applied to partial invoices at the time of final invoice creation.
Caution
If additional payments for outstanding amounts from previous partial invoices are received after the final invoice is issued, they should be booked directly to the final invoice—not retroactively to the partial invoices.
Partial invoices can be marked as paid in two ways:
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Book Incoming Payment: When a payment is received in the bank account, it can be directly allocated to the corresponding partial invoice. This is done via the standard payment booking process, marking the invoice as paid. See also: Incoming Payments.
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Manually Set Payment Status: If the payment has already been recorded elsewhere or no automatic reconciliation is performed, the partial invoice can be manually marked as paid. To do this, change the payment status in the invoice to Manually set to paid and save.
All completed payments are consolidated and accounted for in the final invoice. Outstanding amounts are only visible to the customer in the final invoice, not in the partial invoices.