How to Set Up Flexible Payment Plans in Invoices

Setting Up Payment Plans

You can now divide an invoice into multiple installments using payment plans, giving payers the flexibility to pay over time. This feature allows you to set up splits based on a percentage of the total or a fixed amount, each with its own due date and payment status.

Creating a Payment Plan

To add a payment schedule to an invoice, click on the Add Payment Schedule option within the invoice. Define the payment terms by selecting either percentage-based or fixed-amount splits, and set due dates for each installment. Once configured, send the invoice to the contact.

How Contacts View and Pay

Contacts receiving an invoice with a payment plan will see the installment details directly on the invoice. They can choose to pay one or more installments at a time, but payments are restricted to the predefined splits. The invoice is marked as paid only after all installments are completed.

Customizing Payment Plan Notifications

You can customize, enable, or disable reminder emails and SMS messages for payment schedule installments. Navigate to Payments → Invoices & Estimates → Settings → Notifications → Customer Notifications, find the Payment Schedule Received option, and edit the template or toggle it off. Note: Merge fields for payment schedules will appear empty if the invoice lacks a payment plan.

Why Use Payment Plans?

This feature addresses the need for splitting medium to large invoices into manageable installments, putting control of the payment structure in the hands of the payee (you), unlike partial payments where the payer decides the amount and timing.