# How to Create a Deposit Invoice in Xero

> To create a deposit invoice in Xero, navigate to Projects, select your project, and click Invoice then Deposit. Choose your invoice basis and enter the value, click Open Draft Invoice, fill out the required information, and finally select Approve & Email or Save & Close.

Canonical: https://livedemo.ai/tutorials/how-to-create-a-deposit-invoice-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a36bfab56e05a00fdbb0c/preview?step=1

## Steps

1. On Xero's main dashboard, head over to the top menu bar and click 'Projects'.
2. Choose 'All Projects' from the list of options.
3. Following that, find and open the project you want to use.
4. Tap 'Invoice' in the top-right corner.
5. Subsequently, select 'Deposit' to proceed.
6. Choose your preferred invoice basis, then enter the corresponding value into the provided input field.
7. Once done, tap 'Open Draft Invoice'.
8. Fill out the input fields with the required information. You may retain some default information or revise the others according to your needs.
9. Finally, review your input and then tap 'Approve & Email' or 'Save & Close' to create your Xero deposit invoice.