What are Payment Schedules?
Payment Schedules in FreshBooks allow you to create a payment plan for your Clients, so they can pay Invoices in multiple and partial installments on dates of your choosing. This saves you from having to create multiple Invoices, or continually editing an existing Invoice whenever a new payment is due. You can also check out other ways to get paid faster here.
To set up a Payment Schedule, follow these steps:
- Go to the Invoices section
- Click on the New Invoice button
- Add the Client, and fill out your Invoice details with whatever you're billing for
- You'll now see an Add a Payment Schedule link towards the bottom of the Invoice:
- Choose between Percentage or Flat Amount
- You can add up to 12 payments, and choose the percentage or amount as well as the date of each payment
- When you're all done, click Add Schedule
- The Payment Schedule will then be reflected at the bottom of the Invoice.
- The total on the Payment Schedule must equal the full total on the Invoice (including any previous payments on it) - so if a Deposit was already added to the Invoice, you must include the Deposit payment in your Payment Schedule too
- Payment Schedules do not affect the status of the Invoice; if you do not want the Invoice to become Overdue while using a Payment Schedule, you can change the Due Date to the same date as the last payment on the schedule
- You can adjust the date of each payment as needed (e.g., when a portion of a job is completed)
When your Client views an Invoice with a Payment Schedule on it, they will have the option to pay for one scheduled payment, or they can check off the box to pay multiple payments at once:
How do Late Payment Reminders work with Payment Schedules?
If you have enabled Late Payment Reminders for a Client, their Invoice will send a reminder out for each scheduled payment. If you have all 3 Late Payment Reminders enabled, all 3 reminders will send out for each payment that is overdue (past the payment's Due Date specified on the schedule).
For example, a Payment Schedule of 5 payments that are all overdue will trigger 3 Late Payment Reminders each, for a total of 15 reminders.
If no Late Payment Reminders are set up, it's still up to your Client to pay on time and no additional emails are sent. To enable Late Payment Reminders so that your Client doesn't accidentally miss a scheduled payment, get started here.
How do Partial Payments work with Payment Schedules?
If you’ve enabled Partial Payments (with WePay or Stripe), your Clients will then have the option to specify a partial amount to pay or pay an installment of a Payment Schedule in full. If Partial Payments are disabled on the Invoice, the Client will be prompted to pay the outstanding installment in full only.