Article from
What is the difference between a progress invoice and an interim invoice?
For new projects, you want to issue an invoice as soon as possible. Especially for longer-term projects, expenses are constantly incurred – salaries being a prime example. Therefore, it is common to agree with the client on interim invoices or progress invoices.
But be careful: interim invoices and progress invoices are two different things – in terms of form, content, tax, and legal aspects.
English image not yet available...What is an interim invoice?
An interim invoice is a full-fledged invoice that bills AFTER services have been provided. Like any formal invoice, all services are listed on the invoice.
The interim invoice has the same consequences as the final invoice: warranty obligations must be observed. Later, when a possible final invoice is issued, the interim invoices are no longer taken into account.
» Interim invoicing by monthly Invoicing based on effort in MOCO
» Interim invoice from Proposal in MOCO
» Interim invoicing by monthly Invoicing based on effort in MOCO
» Interim invoice from Proposal in MOCO
What is a progress invoice?
A progress invoice (also known as a deposit invoice or advance invoice) is issued BEFORE services are provided. A certain percentage of the total sum is billed.
In this case, the period for possible warranty claims has not yet started.
No discounts are applied in progress invoices, as it concerns an advance payment amount.
A final invoice is mandatory
In this case, the period for possible warranty claims has not yet started.
No discounts are applied in progress invoices, as it concerns an advance payment amount.
A final invoice is mandatory
The final invoice (also known as the closing invoice) lists all services and the total amount. Previous advance payments and partial payments reduce the outstanding total amount.
» Progress and final invoicing in MOCO
» Progress and final invoicing in MOCO
Conclusion
You must not confuse an interim invoice with a progress invoice under any circumstances. Both are very different. Not least from the tax aspect (VAT and income tax).
Photo by Possessed Photography on Unsplash
Photo by Possessed Photography on Unsplash
