How to Turn a Quote into an Invoice (Including Deposit Invoices)
A quote becomes an invoice once the client accepts it and it is time to be paid, either for a deposit before you buy materials or for the finished work. You cannot simply rename the quote: an invoice needs its own number, date and payment terms. This guide shows the steps, a worked deposit-for-materials example, and how to show the deposit on the final invoice.
Fastest route: enter your quote in the free invoice generator with the type set to "Quote", then press Convert to invoice or Create deposit invoice. It copies the line items, gives the document an invoice number and references the quote.
Quote vs invoice: what has to change
| Field | On the quote | On the invoice |
|---|---|---|
| Title | QUOTE (or ESTIMATE) | INVOICE (or DEPOSIT INVOICE) |
| Number | Quote number, e.g. Q-2026-118 | Next number in your invoice sequence, e.g. INV-1051. Never reuse the quote number as the invoice number. |
| Date | Date quoted, plus "valid until" | Date the invoice is issued |
| Reference | – | "Per quote Q-2026-118 accepted 2 Oct 2026" (and the client's PO number, if any) |
| Amounts | What the job will cost | What is being billed now: deposit, stage payment or final total |
| Terms | Validity, assumptions, payment schedule | Due date and how to pay |
The differences between estimates, quotes, invoices and receipts are covered in invoice vs receipt vs estimate.
Step by step
- Get the acceptance in writing. A signed quote, a purchase order or a clear email ("Approved, please go ahead") is your proof that the client agreed to the price.
- Create a new document from your invoice template, not a renamed copy of the quote file. Start from a template, your accounting software, or the generator.
- Give it the next invoice number in your sequence and today's date.
- Reference the quote (and the PO number, if the client issued one) near the top.
- Copy the line items you are billing now. For a final invoice, copy them all and add any approved changes as extra lines. For a deposit, use one line for the deposit (see below).
- Set the payment terms. Deposits are usually due upon receipt; final invoices follow the schedule in the quote.
- Save as PDF and send, keeping the quote and invoice numbers in the email subject. See invoice email templates.
Deposit invoices for materials
A common situation: you (or your subcontractor) need money to buy materials before work starts. Do not send the quote back as the "invoice". Issue a deposit invoice for the agreed amount, referencing the quote:
- Title it "Invoice" or "Deposit invoice" and give it the next invoice number.
- Use a single line, e.g. "Deposit for materials per quote Q-2026-118 (40% of $8,400.00)", or list the materials being ordered.
- Set terms to due upon receipt and say that materials are ordered once the deposit clears.
Some places limit deposits on consumer jobs. California, for example, caps the down payment on most home-improvement contracts at 10% of the contract price or $1,000, whichever is less. Check the rules for your trade and state before setting the amount.
If you are registered for VAT or GST, a deposit can create a tax point when it is received (in the UK, for example, VAT is due on the deposit at that point), so the deposit invoice may need to show tax on the deposit amount.
Worked example
A tiling subcontractor quotes a bathroom job: Quote Q-2026-118, materials $3,360 and labour $5,040, total $8,400, accepted by the main contractor on 2 October 2026. The agreed schedule is 40% deposit, balance on completion, Net 14.
| Document | Lines | Amount | Terms |
|---|---|---|---|
| Quote Q-2026-118 | Materials $3,360; labour $5,040 | $8,400.00 | Valid 30 days |
| Invoice INV-1051 (deposit), 2 Oct | 40% deposit per Q-2026-118 | $3,360.00 | Due upon receipt |
| Invoice INV-1063 (final), 24 Oct | Materials $3,360; labour $5,040; approved change: extra niche $350; less deposit received (INV-1051) −$3,360 | $5,390.00 balance | Net 14 |
The final invoice shows the full value of the job ($8,750 including the change), subtracts the deposit already paid, and leaves a balance of $5,390. The client can match every figure to the quote and the deposit invoice. Sales tax, if any, is left out of this example for clarity.
Partial and progress invoices
For larger jobs, invoice the quote in stages, e.g. "Progress invoice 2 of 4 – 25% of quote Q-2026-118". Each invoice lists what has been billed so far and what remains. The deposits and milestones guide covers common splits and how to present them.
In accounting software
Most accounting apps can convert an accepted quote or estimate into an invoice in one step; QuickBooks and Xero both have this, and some let you invoice a percentage of the estimate for a deposit or progress payment. The same rules apply: a new invoice number, a reference to the quote, and only the amount you are billing now.
Common mistakes
- Sending the quote with "Invoice" typed over the title. The client's accounts team will query the number and the date.
- Billing the whole quote as a deposit. Bill only the agreed deposit; the rest follows the schedule.
- Forgetting the deposit on the final invoice. Always subtract what was already paid, quoting the deposit invoice number.
- Changing prices between quote and invoice without approval. Add changes as separate, approved lines.
Frequently asked questions
Can I use the quote number as the invoice number?
No. Invoices need their own unbroken number sequence. Reference the quote number on the invoice instead.
How do I invoice a deposit from a quote?
Issue a new invoice with one line for the agreed deposit (e.g. 40% of the quoted price), reference the quote, and make it due upon receipt.
What if the final price differs from the quote?
Add approved changes as separate lines on the final invoice so the client can see exactly what changed from the quote.
Create your invoice
Download a free template in Word, Excel or PDF, or fill one in online and save it as a PDF.