Partial Payments

Partial Payments

Partial payments allow you to record payments that are less than the full invoice amount. This is common when customers make installment payments or when you receive partial payments for large invoices. EquiBillBook provides flexible options for managing partial payments.

What are Partial Payments?

A partial payment is a payment that covers only a portion of the total invoice amount. When you record a partial payment, the invoice status changes to "Partially Paid" and the remaining balance continues to show as outstanding until fully paid.

When to Use Partial Payments

Partial payments are useful in various scenarios:

• Customers making installment payments for large invoices
• Down payments or deposits on orders
• Payments that don't cover the full invoice amount due to discounts or adjustments
• Progressive payments for long-term projects
• Customers paying what they can afford at the moment

Recording a Partial Payment

Step 1: Access Customer Payment

To record a partial payment:

1. Navigate to Customers → Customer Payment
2. Click "Add Payment"
3. Select the customer who is making the payment

Step 2: Select Invoice and Enter Partial Amount

When allocating the payment:

• Select the invoice you want to apply the payment to
• Enter the partial payment amount (less than the invoice total)
• The system will display the invoice total and outstanding balance
• Enter the amount you're receiving in the payment field

Step 3: Complete Payment Details

Fill in the remaining payment information:

• Payment Date: Date when the partial payment was received
• Payment Method: How the customer paid
• Account: Account where payment is deposited
• Reference Number: Cheque number, transaction ID, etc.
• Notes: Add notes about the partial payment

Step 4: Save the Payment

Review and save:

1. Verify the partial payment amount is correct
2. Check that the remaining balance is accurate
3. Click "Save" to record the partial payment

Invoice Status with Partial Payments

After recording a partial payment:

• The invoice status changes to "Partially Paid"
• The outstanding balance is updated to show the remaining amount due
• The invoice remains in the accounts receivable until fully paid
• You can apply additional payments to the same invoice until it's fully paid

Applying Multiple Partial Payments

You can apply multiple partial payments to the same invoice:

1. Record the first partial payment as described above
2. When the customer makes another payment, select the same invoice again
3. Enter the new payment amount
4. The system will show the remaining balance and apply the new payment
5. Continue until the invoice is fully paid

Allocating Partial Payment Across Multiple Invoices

You can also split a single payment across multiple invoices:

1. Select multiple invoices from the outstanding invoices list
2. Enter the payment amount for each invoice
3. Ensure the total allocated amount equals the total payment received
4. Each invoice will be updated with its respective partial payment

Tracking Partial Payments

You can track partial payments through:

• Payment History: View all payments applied to an invoice
• Customer Statement: See payment details in customer statements
• Receivables Reports: Monitor outstanding balances and partial payments
• Invoice Details: View payment allocation on the invoice itself

Payment Receipts for Partial Payments

When you record a partial payment:

• You can generate a payment receipt showing the partial payment amount
• The receipt will show the remaining balance if applicable
• Receipts can be printed or emailed to customers
• Each partial payment can have its own receipt

Best Practices for Partial Payments

• Always record the exact amount received, not rounded amounts
• Add clear notes about payment terms or installment schedules
• Set up payment reminders for remaining balances
• Track payment schedules to follow up on overdue partial payments
• Review outstanding balances regularly to ensure payments are being applied correctly
• Use reference numbers to track payment transactions
• Communicate clearly with customers about remaining balances

Common Scenarios

Scenario 1: Installment Payments

For large invoices paid in installments:

• Record each installment as a separate partial payment
• Use consistent reference numbers or payment terms in notes
• Set up reminders for upcoming installment due dates

Scenario 2: Down Payment

For orders with down payment:

• Record the down payment as a partial payment (or advance payment)
• When the final invoice is created, apply the advance to the invoice
• Record the remaining payment when received

Scenario 3: Discount or Adjustment

When payment is less due to discount or adjustment:

• Record the actual amount received as a partial payment
• Handle the discount/adjustment through proper accounting entries
• Ensure the invoice is marked as paid if the adjusted amount equals the payment

Related Articles

Learn more about:

• Recording Customer Payments
• Advance Payments
• Payment Reconciliation
• Payment Receipt Generation

Partial payments are a flexible way to manage customer payments when full payment isn't received immediately. EquiBillBook makes it easy to track and manage these payments while maintaining accurate accounts receivable records.