What type of invoice is used to bill a portion of a fixed price contract in Xero?

The use of a project amount invoice in Xero is specifically designed for billing a portion of a fixed price contract. This type of invoice allows users to effectively manage and bill for projects based on predefined fixed amounts, while also keeping track of the overall project budget. By utilizing a project amount invoice, businesses can ensure that they are invoicing clients accurately for the agreed-upon portions of work completed, which is particularly important in contractual agreements where milestones or phases may dictate when invoices are issued.

Additionally, project amount invoices can help in managing cash flow and financial planning by allowing for structured payments as work progresses, thus aligning invoicing with project deliverables. This ensures that financing aligns more closely with the completion of work, providing clarity for both the service provider and the client regarding what has been billed and what is still pending.

In contrast, while deposit invoices are also used in some contractual situations, they typically represent an upfront payment rather than billing for completed work based on a fixed contract amount. Tasks and expenses invoices generally detail specific work-related costs rather than a fixed fee arrangement. Regular sales invoices are suitable for one-off sell transactions and do not specifically cater to the structured billing associated with fixed price contracts in projects.