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DocumentationStructur for QuickbooksUser GuideMulti-Step Invoicing

Multi-Step Invoicing

Multi-step invoicing allows you to split payments across multiple invoices for the same deal. This is essential for large projects, milestone-based billing, and phased payment structures.

Overview

Instead of invoicing the full amount at once, you can create:

  • Deposit Invoice: Initial payment (e.g., 30% upfront)
  • Follow-up Invoice(s): Intermediate payments (e.g., 40% at milestone)
  • Final Invoice: Remaining balance (e.g., 30% upon completion)

Benefits:

  • Cash flow management (get paid sooner)
  • Risk reduction (collect deposit before starting work)
  • Milestone-based billing (payment tied to deliverables)
  • Client budgeting (spread payments over time)

Invoice Types Explained

Deposit Invoice

Purpose: Secure initial payment before starting work

Amount: Typically 20-50% of total project value

When to use:

  • Project kickoff
  • Signing contract
  • Before ordering materials
  • Securing resources

Example: $10,000 project → 30% deposit = $3,000 invoice

Follow-up Invoice

Purpose: Bill for intermediate milestones or phases

Amount: Percentage of total or specific milestone value

When to use:

  • Milestone completion (design approved, Phase 1 done)
  • Scheduled intervals (monthly retainers)
  • Progress payments (50% completion)
  • Material delivery

Example: $10,000 project → 40% follow-up = $4,000 invoice

Multiple follow-ups: You can create several follow-up invoices for the same deal.

Final Invoice

Purpose: Bill remaining balance upon project completion

Amount: Remaining percentage after all previous invoices

When to use:

  • Project delivery
  • Final deliverables accepted
  • Contract completion
  • Last milestone reached

Example: $10,000 project (30% + 40% already invoiced) → 30% final = $3,000 invoice

Auto-calculation: Integration can calculate remaining balance automatically.

Common Payment Structures

30/70 Structure

Deposit: 30% upfront Final: 70% on completion

Use case: Moderate-risk projects, established clients

Example: $5,000 project

  • Deposit: $1,500 (30%)
  • Final: $3,500 (70%)

50/50 Structure

Deposit: 50% upfront Final: 50% on delivery

Use case: Balanced risk, standard projects

Example: $8,000 project

  • Deposit: $4,000 (50%)
  • Final: $4,000 (50%)

30/40/30 Structure

Deposit: 30% upfront Follow-up: 40% at milestone Final: 30% on completion

Use case: Multi-phase projects, long timelines

Example: $10,000 project

  • Deposit: $3,000 (30%)
  • Follow-up: $4,000 (40%)
  • Final: $3,000 (30%)

25/25/25/25 Structure

Four equal payments at different milestones

Use case: Very large projects, quarterly billing

Example: $20,000 project

  • Invoice 1: $5,000 (25%)
  • Invoice 2: $5,000 (25%)
  • Invoice 3: $5,000 (25%)
  • Invoice 4: $5,000 (25%)

Step-by-Step: Multi-Step Invoicing

Scenario: $10,000 Website Project

Payment structure: 30% deposit, 40% at design approval, 30% at launch

Step 1: Create Deposit Invoice

When: Contract signed, project starting

  1. Open the deal (amount: $10,000)
  2. QuickBooks Invoices tab → Create Invoice
  3. Invoice Type: Deposit
  4. Percentage: 30
  5. Calculated Amount: $3,000 (30% of $10,000)
  6. Customer: Select client contact
  7. Tax Code: Select appropriate tax
  8. Product: Professional Services
  9. Payment Terms: Due on receipt
  10. Memo: “Website Project - Deposit (30%)”
  11. Email: Send now
  12. Submit

Result: Deposit invoice for $3,000 created and emailed.

Step 2: Track First Payment

After client pays:

  1. Mark invoice as paid in QuickBooks:

    • QuickBooks → Invoices → Find INV-1001
    • Click Receive Payment
    • Enter payment details
    • Save

  2. Update deal in HubSpot (optional):

    • Note payment received
    • Update deal stage if needed (e.g., “In Progress”)

Step 3: Create Follow-up Invoice

When: Design completed and approved

  1. Open the same deal
  2. QuickBooks Invoices tab → Create Invoice
  3. Invoice Type: Follow-up
  4. Percentage: 40
  5. Calculated Amount: $4,000 (40% of $10,000)
  6. Customer: Same client contact
  7. Tax Code: Same as deposit
  8. Product: Professional Services
  9. Payment Terms: Net 15
  10. Memo: “Website Project - Milestone: Design Approval (40%)”
  11. Email: Send now
  12. Submit

Result: Follow-up invoice for $4,000 created.

Running total: $3,000 + $4,000 = $7,000 invoiced (70% of project)

Step 4: Create Final Invoice

When: Website launched and accepted

  1. Open the deal
  2. QuickBooks Invoices tab → Create Invoice
  3. Invoice Type: Final
  4. Percentage: 30 (or let system calculate remaining)
  5. Calculated Amount: $3,000 (30% remaining)
  6. Customer: Same client contact
  7. Tax Code: Same
  8. Product: Professional Services
  9. Payment Terms: Due on receipt
  10. Memo: “Website Project - Final Payment (30%)”
  11. Email: Send now
  12. Submit

Result: Final invoice for $3,000 created.

Project total: $3,000 + $4,000 + $3,000 = $10,000 (100%)

Step 5: Close the Deal

After final payment received:

  1. Update invoice payment status in QuickBooks
  2. Update deal stage in HubSpot (e.g., “Closed Won”)
  3. All three invoices tracked in QuickBooks Invoices tab

Managing Multiple Invoices

Viewing All Invoices for a Deal

In the QuickBooks Invoices tab:

  1. Scroll down to invoice list
  2. See all invoices created for this deal
  3. Each shows:
    • Invoice number (e.g., INV-1001)
    • Amount
    • Date created
    • Type (if labeled)
    • Email status

Example view:

Invoice List:
- INV-1003: $3,000 (Final) - Nov 15, 2024 - Sent
- INV-1002: $4,000 (Follow-up) - Oct 20, 2024 - Paid
- INV-1001: $3,000 (Deposit) - Sep 25, 2024 - Paid

Tracking Payment Progress

Manual tracking:

  • Use QuickBooks to mark invoices as paid
  • Update deal properties in HubSpot with total collected
  • Add notes to deal timeline

QuickBooks reports:

  • Run Accounts Receivable report
  • Filter by customer
  • See all outstanding invoices

Calculating Remaining Balance

Manual calculation:

  1. Note total deal amount: $10,000
  2. Sum all invoices created: $3,000 + $4,000 = $7,000
  3. Remaining: $10,000 - $7,000 = $3,000

Automatic (if supported):

  • Some implementations auto-calculate remaining percentage
  • Shows suggested final invoice amount

Best Practices for Multi-Step Invoicing

Planning Payment Structure

✅ Do:

  • Define payment structure in contract upfront
  • Tie payments to clear milestones
  • Consider cash flow needs
  • Match payment schedule to project timeline
  • Document structure in deal properties

❌ Don’t:

  • Change structure mid-project without agreement
  • Create arbitrary percentages
  • Invoice before milestone reached
  • Forget to track which invoices have been created

Creating Each Invoice

✅ Do:

  • Use clear memo describing milestone
  • Send invoices promptly when milestone reached
  • Verify percentage calculations are correct
  • Keep tax code consistent across invoices
  • Document invoice numbers in deal notes

❌ Don’t:

  • Create invoices out of sequence (deposit, then final, skipping follow-up)
  • Use inconsistent tax codes for same project
  • Forget to email invoices
  • Create duplicate invoices by mistake

Timing Invoice Creation

Good timing:

  • Deposit: Upon contract signing or project start
  • Follow-up: Immediately after milestone completion
  • Final: Upon project delivery and acceptance

Poor timing:

  • Creating all invoices upfront (before work done)
  • Delaying follow-up invoices long after milestone
  • Final invoice before project completion

Advanced Multi-Step Scenarios

Scenario 1: Monthly Retainer with Final Deliverable

Structure: 6 monthly payments + final delivery payment

Example: $14,000 project over 6 months

Invoices:

  1. Month 1: $2,000 (Follow-up - 14.3%)
  2. Month 2: $2,000 (Follow-up - 14.3%)
  3. Month 3: $2,000 (Follow-up - 14.3%)
  4. Month 4: $2,000 (Follow-up - 14.3%)
  5. Month 5: $2,000 (Follow-up - 14.3%)
  6. Month 6: $2,000 (Follow-up - 14.3%)
  7. Delivery: $2,000 (Final - 14.3%)

Total: 7 invoices, $14,000

Scenario 2: Deposit + Milestone-Based Completion

Structure: 30% deposit, then bill upon milestones (not pre-defined percentages)

Example: $20,000 project

Invoices:

  1. Deposit: $6,000 (30%)
  2. Milestone 1 (Research done): $4,000 (20%)
  3. Milestone 2 (Design approved): $5,000 (25%)
  4. Milestone 3 (Development): $3,000 (15%)
  5. Final (Launch): $2,000 (10%)

Total: 5 invoices, flexible percentages based on work completed

Scenario 3: Progress Payments

Structure: Bill based on % completion inspections

Example: $30,000 construction project

Invoices:

  1. Start: $6,000 (20% completion)
  2. Progress 1: $6,000 (40% completion)
  3. Progress 2: $6,000 (60% completion)
  4. Progress 3: $6,000 (80% completion)
  5. Final: $6,000 (100% completion)

Total: 5 equal invoices at different stages

Troubleshooting Multi-Step Invoicing

”Cannot create follow-up: No deposit found”

Cause: System expects deposit before follow-up (implementation-specific)

Solution: Create deposit invoice first, then follow-up.

Percentages Don’t Add Up to 100%

Problem: Created 30% + 40% + 40% = 110%

Solution:

  • Review contract payment structure
  • Adjust final invoice percentage
  • If overage intentional (e.g., late fees), document in memo

Client Wants to Change Payment Structure

Problem: Client requests different percentage split mid-project

Solution:

  1. Update contract/agreement
  2. Calculate new invoices based on what’s already paid
  3. Create remaining invoices with new structure
  4. Document change in deal notes

Example: Original 30/70, now 30/40/30

  • Already created: 30% deposit ($3,000)
  • Create: 40% follow-up ($4,000) - new milestone
  • Create: 30% final ($3,000) - completion

Lost Track of How Much Invoiced

Solution:

  1. Open QuickBooks Invoices tab
  2. Sum all invoice amounts for the deal
  3. Compare to total deal amount
  4. Calculate remaining

Or:

  1. Log into QuickBooks
  2. Search by customer name
  3. View all invoices
  4. Check payment status

Integration with HubSpot Workflows

Automating Deal Updates

Manual approach: After each invoice, update deal properties

Automated (via HubSpot workflows - admin setup):

  1. Create custom deal properties:

    • “Deposit Invoice Number”
    • “Deposit Paid” (Y/N)
    • “Total Invoiced Amount”

  2. Set up workflow:

    • Trigger: Invoice created
    • Action: Update deal property

Note: Requires custom development or third-party integration.

Deal Stage Automation

Manual workflow:

  • Deposit invoice created → Move to “In Progress”
  • Follow-up invoice created → Stay in “In Progress”
  • Final invoice created → Move to “Pending Payment”
  • Final invoice paid → Move to “Closed Won”

Best practice: Document stage criteria in your CRM processes.

Frequently Asked Questions

Can I create a final invoice without a deposit?

Yes. “Final” can be used for a single full-payment invoice (100% of deal amount).

How many follow-up invoices can I create?

No limit. Create as many follow-up invoices as your project requires.

What if I need to invoice more than the deal amount?

Update the deal amount in HubSpot first, then create the invoice. Or create invoice with manual amount override if supported.

Can I create invoices out of order?

Technically yes, but not recommended. Follow the logical sequence: Deposit → Follow-up(s) → Final.

What if the client pays more than invoiced?

Handle in QuickBooks: Record overpayment and apply to next invoice or refund.

Can I edit invoice percentages after creation?

No. Invoices must be edited in QuickBooks. Void and recreate if necessary.

What if I forget which invoices I’ve created?

Check the QuickBooks Invoices tab on the deal - it lists all invoices created for that deal.

Next Steps

Master Invoice Management

  1. Email Management - Schedule follow-up invoice emails
  2. Invoice Tracking - Monitor payment status
  3. Best Practices - Optimize multi-step workflows

Learn More Features

  1. Customer Sync - Understanding contact syncing
  2. Creating Invoices - Review basic invoice creation

Additional Resources

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