Client Extended Payment Plan - What do do with aged (partially paid) invoices?

Scooterlam

Hi,

QW_2018HBR_R5.15 here....

I have a client who is behind in paying my invoices.  In Quicken, I've created and submitted 3 monthly invoices for consulting services in 2017.  These invoices are now 60 to 120+ days late.  I have received 2 partial payments in 2017 and I applied them against the first invoice.  This first invoice is only partially paid and the other two are not paid. 

So....my client invoices register shows 3 invoices and 2 partial payments.

Now, I have worked out a payment plan with the client to come current on their overdue balance.   They will make payments each month for the next 4 months, starting January 31 and ending on April 30

What should my approach be in Quicken to handle this?  That is to: 

1. properly record and invoice against the new payment plan, along with issuing statements upon payment?

2.  address the old outstanding invoices so as to not double up in my revenue reporting?  Cancel the remaining balances?

3.  not loose visibility in Quicken to the old invoices and statements already submitted?

Anything else to do here or consider? 

Thanks!

UKR

Do not generate new invoices as payment reminders for these partial payments. You already invoiced the customer.

Your best bet is to record each payment within the Customer Invoices account as it arrives. That's the only way you will end up with all the payments being properly recorded and the invoices eventually getting marked as paid.

If you record this payment in your checking account as transfer to the Customer Invoices account, it won't get properly shown as PMT but as Credit. Please try to avoid that.

Have you created Customer Statements to show a report of the invoices and all partial payments? That helps with tracking the outstanding amount.

Scooterlam

UKR said:

Do not generate new invoices as payment reminders for these partial payments. You already invoiced the customer.

Your best bet is to record each payment within the Customer Invoices account as it arrives. That's the only way you will end up with all the payments being properly recorded and the invoices eventually getting marked as paid.

If you record this payment in your checking account as transfer to the Customer Invoices account, it won't get properly shown as PMT but as Credit. Please try to avoid that.

Have you created Customer Statements to show a report of the invoices and all partial payments? That helps with tracking the outstanding amount.

Hi UKR,

Thanks for your insights.  Yes, I've been issuing statements upon receipt of partial payments.

As I understand your suggestion.....Simply continue to receive (record) these new client payments against the original invoices and use statements to track ageing, report payments and balance due until the overdue balance is paid off.  Outside of Quicken, I can send them a reminder email of payment due based upon the new payment schedule.

Would this also work......or does this alternative make any sense?  Since the client and I agreed to a new payment plan, I thought I could issue a credit against each invoice to zero-out the remaining overdue balance from 2017.  Then issue new invoices, with the agreed upon amount, at the agreed upon date.  This would enable me to send a "reminder" invoice.  But I suspect this would make my Statements to this client messy, showing the credit.    Also, not sure when I do receive payments against those new invoices what it would do to my tax reporting....

Your suggestion seems simpler!  Thanks!

Scott

UKR

UKR said:

Do not generate new invoices as payment reminders for these partial payments. You already invoiced the customer.

Your best bet is to record each payment within the Customer Invoices account as it arrives. That's the only way you will end up with all the payments being properly recorded and the invoices eventually getting marked as paid.

If you record this payment in your checking account as transfer to the Customer Invoices account, it won't get properly shown as PMT but as Credit. Please try to avoid that.

Have you created Customer Statements to show a report of the invoices and all partial payments? That helps with tracking the outstanding amount.

IMHO, keep it simple.
Just mail statements as a reminder, perhaps with an attached letter to remind customer of agreement and/or thank-you notes for each partial payment received on time.