Updated Jan 9, 2023
A payment plan in Dubsado lets you create invoice due dates, split large invoices into installments, and send follow-up payment reminders.
To help you get started, we've gathered the most common payment plans! You are always welcome to customize so the payment plan fits your business needs.
In this article:
Example 1: Pay in full
100% of the payment is due upfront.
Best used for:
workshops
mini-sessions
⛔ Heads up! You can’t require autopay on payment plans with only one installment.
Payment plan set up
Create a new payment plan template in Templates >> Payment Plans.
Under Due Date, select Relative.
Choose 0 day(s) after payment plan applied to invoice to make the payment due upon receipt.
Under Amount Due, select Divide equally or Percentage (100%).
Add payment reminders.
Example 2: Initial deposit
Collect the same deposit amount upon booking, regardless of the invoice total.
Best used for:
large scale events
securing space for limited spots
high-priced packages
Payment plan set up
Example: A $500 deposit is collected upon booking, and the rest of the invoice is divided into equal installments.
Installment one:
Create a new payment plan template in Templates >> Payment Plans.
Under Due Date, select Relative.
Choose 0 day(s) after contract signed by client to make the payment due on the same day that the client signs the contract.
Under Amount Due, select Fixed.
Type $500.
Installment two (or more):
Click Add installment.
Under Due Date, select Relative.
Choose a due date for the remaining balance. A common trigger is to use 3 day(s) before project start date.
Under Amount Due, select Divide equally.
Add payment reminders.
👋 Here’s a tip… Requiring clients to enroll in autopay could reduce missed payments!
Repeat steps 1 to 5 for each additional installment.
Example 3: Equal payments
Split up a large invoice into installments of equal amounts.
Best used for:
high-priced packages with a set invoice total
coaching or educational programs
Payment plan set up
Example: Three equal installments due upon booking, one month after booking, and two months after booking.
Create a new payment plan template in Templates >> Payment Plans.
Under Due Date, select Relative.
Choose 0 day(s) after contract signed by client to make the payment due on the same day that the client signs the contract.
Under Amount Due, select Divide equally.
Add payment reminders.
👋 Here’s a tip… Requiring clients to enroll in autopay could further reduce missed payments!
Click Add installment.
Repeat steps 1 to 6 for each additional installment, but change the Due Date to 1 month(s) after contract signed by client and 2 month(s) after contract signed by client.
⛔ Heads up! The timing of the trigger is based on the contract date because there isn’t a trigger option for "after the last payment".
Example 4: Milestone or deliverable
Edit due dates depending on a work milestone as you move further along on a project.
Best used for:
invoices where you don’t have exact dates planned yet
web designers delivering proof mockups
⛔ Heads up! You can’t require autopay on payment plans with TBD dates.
Payment plan set up
Example: 20% of the invoice is due after the first work deliverable is done. After that, the remaining balance is split up equally into two installments.
Installment one:
Create a new payment plan template in Templates >> Payment Plans.
Under Due Date, select TBD.
Under Amount Due, select Percentage (20%).
Add payment reminders.
Installment two (or more):
Click Add installment.
Under Due Date, select TBD.
Under Amount Due, select Divide equally.
Add payment reminders.
Repeat steps 1 to 4 for each additional installment.
Editing the TBD date
Once you know when a client's payment is due:
Under Projects, click on your client.
Click on Invoices.
Under Payment Plan, click Edit.
Click on the TBD installment.
Change the due date to Fixed.
Select the due date.
⛔ Heads up! If you have a payment reminder email set to send 0 day(s) before due date and change the due date to today, then the email will send immediately.
FAQ
Should I use Divide equally or Percentage?
Use Divide equally whenever possible in case you change your client's invoice after they have already made a payment.
Can you combine Divide equally, Percentage, and Fixed amounts?
Yes! You can use a mix in the same payment plan. Installment amounts are calculated in the following order:
Fixed
Percentage
Divide equally
The order of installments in the plan does not matter. Example: You want a payment plan with two installments — one is for $500.00 and the other is for 100%. The $500 gets subtracted from the invoice total first. The 100% covers the remaining balance.
Should I use an equal installment payment plan or a recurring invoice?
Payment plans vs recurring invoices are best used in different situations. Use an equal installment payment plan if you have a set end date or a set invoice total. Use a recurring invoice if you charge the same amount and don’t know when your services will end.
👋 Here’s a tip… Use a recurring invoice if you notice your payment plan has six or more installments — a recurring invoice is easier to manage than a large payment plan.