How to Record Partial Payments on a Nigerian Invoice

A customer does not always pay an invoice in one transfer. They may pay a deposit, make two instalments or settle the balance after delivery.

Your records should show exactly what was invoiced, what has been received and what remains due.

Start with one invoice

Create the invoice for the full approved amount unless the contract requires separate milestone invoices.

Example:

• Website project: ₦800,000
• VAT, where applicable: shown separately
• Total invoice: ₦800,000 for this simple example
• Deposit required: 50%
• Deposit due: ₦400,000
• Final balance: ₦400,000

State the deposit rule and final due date clearly.

Record each payment against the invoice

When ₦400,000 arrives, add a payment record:

Do not change the original invoice total to ₦400,000. The invoice still represents an ₦800,000 sale. The payment record reduces the amount outstanding.

Issue a receipt for every payment

The receipt should say:

We confirm receipt of ₦400,000 as a part payment towards Invoice INV-2026-0114. The outstanding balance is ₦400,000.

Use a unique receipt number and include the bank or payment reference. The receipt number guide provides useful formats.

You can prepare the receipt with the free receipt generator.

Deposit invoice or full invoice?

There are two common approaches:

1. Issue the full invoice and state the deposit required.
2. Issue a deposit invoice, then issue a final invoice or balance document according to the agreement and accounting treatment.

Use one consistent method. Do not issue documents that make the same sale look like two separate sales.

For a project with formal stages, separate milestone invoices may be clearer. Each milestone should describe the work covered and the amount due.

How to show payment status

Use simple labels:

• Unpaid
• Partially paid
• Paid
• Overdue

After a part payment, show:

• Original total
• Total received
• Remaining balance
• Next due date

Do not mark the invoice paid until the balance is zero or an authorised credit adjustment clears it.

VAT and partial payments

VAT timing and reporting can depend on the transaction and applicable rules. A part payment does not give you permission to change the underlying taxable value without a valid reason.

Show the VAT calculation clearly on the invoice and keep a record of each payment. Use the VAT calculator for the arithmetic and ask a qualified adviser about the tax point for a specific arrangement.

What if the customer underpays?

First, check whether the difference is:

• A bank charge
• Withholding tax
• An agreed discount
• An unauthorised deduction
• A simple mistake

Do not record every short payment as a discount. If withholding tax was deducted, request the supporting credit evidence. If the customer made an error, send a statement showing the balance.

What if the price changes?

Do not silently edit an invoice the customer already received.

If the scope increases, obtain approval and issue an additional invoice or a properly documented replacement. If the price reduces after invoicing, use a credit note where appropriate. Read the credit note guide.

Create and track the invoice

Use the free invoice generator to create the original invoice. Add the deposit or instalment terms in the notes and payment terms.

The invoice payment terms guide helps you write clear deadlines. If a balance becomes overdue, use the payment reminder examples.

Frequently asked questions

Should each instalment have a new invoice number?

Not when the instalments are payments against one invoice. Record each payment against the existing invoice. Use separate invoices only when the contract genuinely creates separate billable stages.

Should I send a new PDF after each payment?

Send a receipt and, if useful, an updated statement or invoice copy showing the new balance. Keep the original invoice number.

Can a customer pay more than the invoice balance?

Record the overpayment separately and agree whether it will be refunded or applied as credit. Do not quietly change the invoice total.