Partially pay an invoice

Sometimes a customer pays only part of an invoice — a deposit, a stage payment, or simply what they can afford this month. You record a part-payment in exactly the same way as a full one, but you allocate less than the full amount. The invoice then shows as Partially Paid and the rest stays outstanding.

Before you begin

• The invoice must be issued (a Draft invoice cannot take a payment).
• You need a payment method set up and your Accounting Settings configured.

Steps

1. Open the issued invoice and go to its Payments section.
2. Select Record new payment.
3. In the Amount field, enter the part-payment received — less than the outstanding balance shown. (The field is pre-filled with the full outstanding amount; simply type over it with the smaller figure.)
4. Complete Payment Date, Payment Method and Currency, add a Reference if you have one, then select Record Payment.

[Screenshot required: Record Payment window with an Amount lower than the outstanding balance]

Splitting one payment across invoices

If the customer sent one lump sum to cover several invoices, don't record it invoice by invoice. Instead record it once from Payments → Customer Payments and allocate a slice to each invoice — including a partial slice to any invoice that is only part-paid. See Record a payment on account and Allocate an existing payment.

What happens next

• Amount Paid rises by the part-payment and Amount Outstanding falls by the same amount.
• The invoice's status becomes Partially Paid automatically.
• The remaining balance stays due. When it later passes its due date while still unpaid, the invoice shows as Overdue until it is cleared.

You can record as many part-payments against the invoice as you need; each one reduces the outstanding balance until it reaches zero, at which point the invoice becomes Paid.

Accounting impact

Each part-payment posts to your books and reduces the customer's accounts receivable balance by the amount allocated. The unpaid remainder continues to be shown as owed to you in your reports and on aged receivables.

Troubleshooting

• "The amount to apply … is more than the invoice still owes …" You tried to apply more than the invoice still owes. Enter an amount no greater than the outstanding balance; if there is money left over, leave it on account for another invoice.
• The invoice still shows the full balance. Check you entered the payment against the correct invoice and that the amount was greater than zero.

Related guides

• Record a payment against an invoice
• Record a payment on account
• Allocate an existing payment
• Understand invoice statuses
• Understand payment statuses