Payment Schedules allow the Invoice total to be collected in several installments. This allows the invoice charges to be immediately applied for accounting and revenue recognition purposes, while the customer pays on a determined schedule.
Create a Payment Schedule by viewing a Draft invoice and clicking Payment Schedule.
- Enter the number of installments and Create a Schedule.
- Specify the amounts charged in each installment and the due date (relative to the original invoice posting date). The schedule's total amount must equal the total Pending Charges.
- Save the schedule.
- To modify a payment schedule, delete it and create a new one.
The original invoice will include the Payment Schedule, outlining each installment's Amount and Due date. There is no reminder that these funds are due, and on the Due date, the system will automatically collect the funds (if Credit Card, ACH or PayPal is the default payment method). If the payment is received, and the Payment Received Email Notifications are enabled, the customer will receive a copy of the updated invoice, including an updated Payment Schedule table. If the amount due is uncollected and the Invoice Overdue Email notification is enabled, a notification will be sent and will include a copy of the original Payment Schedule reflecting the current state of each payment.
Sample Invoice with Payment Schedule
The flexibility of this feature allows you to determine the amount to be collected and how frequently to collect the amount.
In the sample below, the invoice has been split into three payments, where all the monthly charges and 1/3 of the hardware costs (plus tax) are collected immediately, with the remaining 2 periods each another third of the hardware charge (plus tax) only.
Invoice Overdue Notification when Scheduled Payments are configured
Invoice Overdue Notification will include an updated version of the invoice and reflect any paid, overdue or due payment details, similar to what you see in the email notification body.