Payment Plans

Overview

Payment plans allow you to split large invoices into multiple smaller payments over time. This makes it easier for customers to pay and improves cash flow.

Creating a Payment Plan

Step 1: Open Invoice

1. Navigate to the invoice
2. Go to Payments tab
3. Click Create Payment Plan

Step 2: Configure Payment Plan

Set up the payment plan:

• Number of Installments - 2 to 60 installments
• Frequency - Choose from:
  • Weekly
  • Biweekly (every 2 weeks)
  • Monthly
  • Quarterly
• Start Date - When first payment is due
• Payment Amount - Automatically calculated per installment

Step 3: Review Installments

Review the generated installments:

• Due dates
• Payment amounts
• Total plan amount
• Payment schedule

Step 4: Create Plan

Click Create Payment Plan to finalize.

Installment Details

Automatic Calculation

Installments are calculated:

• Total divided by number of installments
• Proper rounding to avoid discrepancies
• Last installment adjusted if needed
• All installments sum to invoice total

Installment Schedule

View the complete schedule:

• Installment number
• Due date
• Amount due
• Status (pending, paid, overdue, cancelled)

Managing Payment Plans

View Payment Plan

1. Open the invoice
2. Go to Payments tab
3. View payment plan:
   • Plan overview
   • Installment list
   • Payment history
   • Plan status

Payment Plan Status

• Active - Plan is active, payments ongoing
• Completed - All installments paid
• Cancelled - Plan cancelled
• Overdue - One or more installments overdue

Making Payments

Customer Payment

Customers can pay installments:

1. Open invoice (via shareable link)
2. View payment plan
3. See current installment amount
4. Pay specific installment
5. Or pay multiple installments

Automatic Allocation

When a payment is received:

• Automatically allocated to installments in order
• Oldest unpaid installment paid first
• Remaining amount applied to next installment
• Continues until payment is fully allocated

Manual Payment Recording

You can also record payments manually:

1. Open the invoice
2. Go to Payments tab
3. Click Record Payment
4. Enter payment details
5. Payment is allocated automatically

Installment Status

Status Types

• Pending - Not yet due
• Due - Currently due
• Paid - Payment received
• Overdue - Past due date
• Cancelled - Installment cancelled

Status Updates

Status updates automatically:

• Based on due dates
• When payments are received
• When plan is cancelled

Payment Plan Modifications

Cancelling a Payment Plan

1. Open the invoice
2. Go to Payments tab
3. Click Cancel Payment Plan
4. Confirm cancellation

Note: Cancelling a plan does not refund payments already made.

Editing Installments

• Due dates can be adjusted
• Amounts can be modified
• Installments can be added or removed
• Changes require confirmation

Payment Reminders

Automated Reminders

Set up reminders for:

• Upcoming installments
• Due installments
• Overdue installments

Manual Reminders

Send reminders manually:

1. Open the invoice
2. Go to Reminders tab
3. Click Send Reminder
4. Customize message
5. Send

Payment Plan Reports

View payment plan analytics:

• Plan Completion Rate - Percentage of plans completed
• Average Installments - Average number of installments
• Payment Timeliness - On-time vs late payments
• Revenue by Plan - Revenue from payment plans

Best Practices

1. Reasonable Terms - Set achievable payment schedules
2. Clear Communication - Explain payment plan to customers
3. Monitor Closely - Track installment payments
4. Send Reminders - Automated reminders for due dates
5. Flexible Terms - Be willing to adjust if needed

Use Cases

Large Invoices

Split large one-time invoices:

• Equipment purchases
• Project fees
• Annual contracts

Recurring Revenue

Convert to recurring payments:

• Monthly retainers
• Subscription-like payments
• Service agreements

Customer Convenience

Make payments easier:

• Budget-friendly options
• Flexible payment terms
• Improved cash flow

Next Steps

• Stripe Payments - Online payment processing
• Payment Tracking - Track all payments
• Managing Invoices - Invoice management