How do partial payments and payment terms work on an invoice?
Choose when an invoice is due, and let customers pay part of it now and the rest later.
Payment terms set the due date: Due on receipt, Net 15, Net 30 or Net 45. Allow partial payments lets a customer pay less than the full amount on their payment page. Whatever is left stays due, and the invoice shows Partly paid with the amount remaining.
Set payment terms
In the invoice form, open Payment due and pick a term. Each option shows the date it gives, for example "Net 15 — Oct 21".
To change your default, open the Business tab, go to Invoicing & payments, and set Payment terms.
Allow partial payments
You can turn this on in three places:
- Every new invoice: under Invoicing & payments, turn on Allow partial payments by default.
- One invoice, while you write it: in the invoice form, open More options and turn on Allow partial payments.
- One invoice, after it is sent: open the invoice, open Payment options, and use the same switch.
When it is on, the customer's payment page has an amount box that starts at the full balance, and they can lower it to $1.00 or more. Turning the switch off later does not undo payments already made.
Taking part of a payment yourself
You do not need the switch to record part of a balance yourself: when you record a check or cash payment, enter less than the balance. See How do I record a check or cash payment?.
What happens to the rest
The invoice badge reads Partly paid with how much is left. You can send a reminder for the rest. See How do I remind a customer about an unpaid or overdue invoice?.