Adding installments to an invoice allows your customer to be able to pay part of the total invoiced amount over a set period and increment of time. This can be beneficial to your organization by providing more frequent, although smaller, payments.
- To start using installments, you'll need to enable installments for your account first.
- Go to Profile > Settings > Invoicing Settings.
- Toggle "Use monthly installments" to Yes.
- Save your changes.
- You can configure installments for an invoice when you are creating it.
- Once you've added the invoice line items and selected a payment method, select "Setup".
- Use the slider to choose the number of monthly installments you want for this invoice.
- The total balance due will automatically be divided among the installment periods with the applicable due date. Select an installment if you want to adjust the amount and/or change the due dates.
- Hit "Save".
You can also set a default number of installments for a group of contacts. Go to Toolbox > Contacts > Groups, then select the Group you want to edit. Select an option from the "Default monthly installments" menu.
View installments and payments
In the Invoicing section, the number of paid installments and total installments will display with the Amount.
From the View Invoice page, you can see the past, current, and future installments of that invoice. In the Payments tab, you can view all the payments associated with that invoice, including the scheduled future payments and due dates.
When creating an invoice and setting up monthly installments, you can add late fees for one or more installments. To enable late fees, go to Profile > Settings > Invoicing settings and toggle "Use late fees" to "Yes".
- Go to Add invoice and enter in the invoice details.
- Under Monthly installments, select Setup.
- Choose the number of installments you want for this invoice.
- Select the installment for which you want to apply a late fee.
- Select "Setup late fee". The late fee fields will be displayed.
The late fees configured for one installment do not automatically apply to the remaining installments. To apply the late fees set for the current installment to all remaining installments, select "Copy to remaining". Each installment will have the option to remove late fees which resets the late fees configuration for that installment.
In the Contact Groups section, you can set a number of monthly installments and the late fees applied to each installment for a group.
- Late fee amount: The late fee value. You can apply the amount as a flat rate or as a percentage. The percentage will be applied to the original invoice balance (sum of all the line items - discount + tax).
- Fee type: Choose the interval in which additional late fees will be generated: daily, weekly, monthly, or annually. For example if you select monthly, the late fee amount will be charged on the same day every month until the full balance for the original invoice is paid.
- Accruing: This dictates how late fees will accumulate. You can set a time interval to allow the payment of the invoice or previously automatic late fees. For example, if you've set a 1% late fee applying Daily and accruing Weekly, the late fee will be generated daily, but it will not be calculated and collected before the end of the accruing period of one week. If the customer pays the invoice before the accruing period, he will not be charged with the daily 1% late fee. If the invoice is paid after the accruing period of one week, the late fees will be calculated and collected along with the invoice balance.
- Tax: You can specify the tax percentage applicable to the amount resulting from the late fee. The late fee is applied to the total invoice amount (minus discount and including tax), and the fixed late fee will be subject to the tax percentage.
- Waive fee? You can set a grace period in which the late fees will apply distinctly for each installment. By default, it's set to "Do not waive". The options are:
- Do not waive
- Waive for a fixed period - Select the number of days after an invoice due date before charging a late fee.
- Waive for an undefined period - The late fees will be shown on the invoice but never applied, no matter the number of days the invoice is past due.