The standard invoice, service delivered, invoice issued, payment received, covers the day-to-day needs of most freelancers and SMEs. But there are situations where that is not enough: you want an advance payment before a project starts, need to correct an invoice that has already been issued, or require a document for customs that does not create a payment obligation.
For these cases, there are specialised invoice types. This guide explains the five most important ones: pro forma invoice, advance invoice, partial invoice, final invoice and credit note (cancellation invoice). For each one, you will learn when it is used, how it affects VAT and how it is recorded in the accounts.
For the general required information, QR invoice and payment terms of a regular Swiss invoice, see our complete invoicing guide.
Invoice types at a glance
Pro forma invoice
A pro forma invoice looks like a normal invoice, but it is not one. It does not create a payment obligation and is not relevant for tax purposes. It is not recorded in the accounts and does not entitle you to recognise taxable turnover or the recipient to claim input VAT.
When do you need one?
The most common use is shipping goods abroad. If you send goods to a third country, including free samples, spare parts or gifts, customs requires a document stating the value. If no regular commercial invoice is available yet, the pro forma invoice fulfils this purpose.
Other uses include advance payment notices, where the customer can see in advance what they will pay before the definitive invoice follows, documentation for banks or insurers, and internal cost centre planning.
How to create it correctly
The document must clearly be labelled “Pro Forma Invoice”. This is not optional. Without such a label, it could be treated as a regular invoice, with all the corresponding tax consequences.
The content is largely the same as a regular invoice, including sender, recipient, line items and value of goods, but without a VAT statement and without a payment request. A good standard note is: “This pro forma invoice does not create a payment obligation and is intended solely for customs/information purposes.”
Accounting treatment
None. The pro forma invoice is not recorded because it is not a tax-relevant document. Once the service has been provided and the regular invoice is issued, only the regular invoice is recorded in the accounts.
Advance invoice (deposit)
An advance invoice requests an advance payment for a project that has not yet been fully performed. It is a clean way to protect cash flow on larger assignments, typically in construction, trades, IT development and consulting projects.
When do you need one?
Whenever you require a payment before the entire service has been delivered. This can be a fixed percentage of the quoted amount, for example 30% at project start, a milestone-based payment plan or coverage of material costs.
The amount and timing should be agreed in the quote or contract so there is no room for disagreement later.
VAT treatment
If you are subject to VAT, you must already show VAT proportionally on the advance invoice. It is not permissible to charge all VAT only with the final invoice. The advance invoice therefore shows: net amount + VAT = gross amount, just like a regular invoice.
Accounting treatment
When received, the advance payment is recorded as an “advance payment received” on a liability account, not as revenue. Revenue is only recognised once the service has been performed and the final invoice has been issued, at which point the advance payment is cleared.
Advance invoice vs. partial invoice
The terms are often used interchangeably, but they do not mean the same thing:
- Advance invoice – requests payment before the service has been performed. The amount is based on the project volume, not on the work completed so far.
- Partial invoice – bills for a clearly defined portion of the service that has already been performed. The amount reflects the actual stage of completion.
In practice, the distinction matters because it affects revenue recognition: a partial invoice can be booked directly as revenue because the service has already been provided, whereas an advance invoice cannot.
Final invoice
The final invoice is the closing document after one or more advance or partial invoices. It lists the total project amount and transparently deducts the amounts already paid.
How to structure it
The structure is important so that the final invoice remains transparent and the VAT is correct:
- List all service items with the total price, as in the quote
- Calculate the subtotal (net)
- Deduct advance/partial invoices already issued, each with invoice number and net amount
- Calculate the remaining amount (net)
- Show VAT on the remaining amount
- Show the gross amount due
The VAT logic: VAT is shown separately at each stage, proportionally on the advance invoices and as the difference on the final invoice. The sum of all VAT amounts shown across the advance and final invoices must exactly equal the VAT on the total project amount.
Credit note and cancellation invoice
If an invoice that has already been issued is incorrect, for example because of the wrong amount, wrong service or duplicate issue, you need a correction document. In Swiss practice, there are two ways to do this:
Credit note (partial correction)
A credit note corrects an existing invoice in full or in part. It must refer to the original invoice number and reverses the amount to be corrected, including VAT.
Typical situations: a customer complains and you grant a discount. A line item was calculated incorrectly. Part of the service was not provided.
The credit note has its own number, for example CN-2026-001, its own date and shows VAT with a negative sign. In the accounts, it is recorded as a reversal or negative entry on the affected accounts.
Cancellation invoice (full cancellation)
If an invoice is completely wrong, for example because it was issued to the wrong recipient or contains a completely incorrect amount, you cancel it in full and then issue a new, correct invoice. The cancellation invoice reverses the original invoice: same amount, same VAT detail, negative sign.
The process: create the cancellation invoice and reference the original invoice number, then issue a new correct invoice with a new number. In the accounts, the original invoice and cancellation offset each other, leaving only the new invoice.
Important for credit notes and cancellations
Never delete an invoice that has already been sent from the system. Even a cancelled invoice must remain traceable in the accounts. The ten-year retention obligation (CO Art. 958f) also applies to incorrect and cancelled documents. The clean method is always: keep the original invoice, create a cancellation/credit document, then issue a new invoice.
The project cycle: From quote to final invoice
In larger projects, the different invoice types work together. A typical process looks like this:
- Create a quote with a payment plan, for example 30% upon commissioning, 30% at a milestone, 40% on project completion
- Advance invoice upon commissioning, 30% of the quoted amount, including VAT
- Second advance invoice at the milestone, another 30%, including VAT
- Complete the service
- Final invoice, total amount minus the two advance invoices (net), VAT on the remaining amount
- Add a QR invoice payment section to each of these invoices
This process assumes that you number each invoice correctly, reference the quote and transparently show the advance deductions on the final invoice. With invoicing software such as Infinity, this workflow can be managed through quote and invoice management, including an automatic QR payment section and accounts receivable overview.
Try Infinity free for 14 days, with unlimited quotes and invoices and no credit card required.
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