What is Final Invoice?
A final invoice requests the remaining balance when a project is complete, accounting for deposits and other payments already received.
A final invoice requests the remaining balance after work is complete.
Send a final invoice when the agreed project, service period, or delivery is finished. It should summarize the full contract value, prior deposits or progress payments, approved changes, credits, taxes, and the exact balance still due.
Final invoice balance example
Fictional USD example. The final project total includes approved changes, credits and tax. Payments are amounts actually received, not invoices awaiting payment.
Other payments exclude the deposit entered above. Each received payment is counted once.
What Is a Final Invoice?
A final invoice closes out project billing by requesting the unpaid balance after completion. It is an invoice type, not a payment deadline. A progress invoice bills during the project; the final invoice reconciles the completed work and earlier payments.
What to Include
- Invoice number, issue date, and customer and business details
- Completed work and the agreed project total
- Approved adjustments, applicable tax, and credits
- Deposits and other payments received, with references
- Remaining balance, payment due date, and payment instructions
Reconcile the Remaining Balance
For this fictional example, the agreed final total is $5,000, including any adjustments. A $1,500 deposit and $2,000 in other received payments leave $1,500 due. Count the deposit only once. An unpaid progress invoice is not a received payment; reconcile outstanding invoices before requesting the final balance to avoid duplicate collection.
When Is a Final Invoice Due?
Use the payment terms agreed with the customer and show the exact due date. "Final" does not automatically mean due immediately, Net 14, or Net 30. Confirm any completion or acceptance conditions before issuing the invoice. See invoice payment terms for how deadlines differ from invoice types.