Debitoor's accounting dictionary
Partial payment

Partial payment - What is partial payment?

Partial payment refers to the payment of an invoice that is less than the full amount due.

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Partial payment is normally half of the total amount, or a percentage of it.

Why do customers make partial payments?

In some cases you might need to create an invoice where part of the total amount needs to be paid in advance just like a deposit. Cases like this are typical for businesses that provide services, where part of the final amount due will be required in advance as a sort of guarantee for completion of the payment.

If you are working in construction, you are probably already familiar with partial payments. An ongoing working progress under a contract can be hard to estimate the final cost, since their might be some extra overhead expenses or problems which might incur. Therefore it is common that the customer is invoiced and will make partial payments until the job is fully completed.

Partial payments simply allow your customers to pay part of the total amount owed in installments as long as the total amount is paid before the required date.

Partial payments and Debitoor

No matter what the reason, partial payments are not that uncommon these days. The problem however is that when customers pay your invoice over a series of payments, it can be easy to lose track of what they still owe.

Debitoor invoicing software helps you easily keep track of your partial payments, and match each payment to the corresponding invoice.

Firstly, you create an invoice for a customer, which states the total amount owed. If your client makes a partial payment - in cash or bank transfer - you can enter this payment on the invoice by following these steps:

  • Click on the invoice in question
  • Click “Enter payment”
  • Enter the payment amount your customer has paid
  • Click “save” Your invoice status will then be changed to “Partial”. Once you have received the remaining outstanding amount, the invoice will be matched and the status will then be changed to “Paid”.

With Debitoor invoicing software, once your customer has made a partial payment and you have entered this in your account under the invoice, your customer will receive a payment receipt via email. The payment receipt will indicate the partial payment, as well as the remaining amount still owed.

Giving your customers the option to make partial payments can actually encourage them to make purchases, since they will not need to make the full payment all at once. This could lead to an increase in your sales, and could make many of your customers happy by giving them an easy payment option.

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