Payment Schedules & Milestones

Set up milestone-based payment plans for larger projects.

What Are Payment Schedules?

Payment schedules break a total project cost into multiple payments:

• Deposit - Upfront payment to start work
• Progress payments - Payments at project milestones
• Final payment - Balance due at completion

This approach helps with:

• Cash flow for materials and labor
• Reduced risk for both parties
• Clear payment expectations

How It Works

The invoice total remains the full project amount. Milestones split that total into separately due portions. The invoice status shows as "Partial" until all milestones are paid, then becomes "Paid."

Note: For ongoing monthly billing with the same amount each month, use Recurring Invoices instead. Payment schedules are best for multi-stage payments on a single project.

Creating a Payment Schedule

From an Invoice

1. Create or open an invoice
2. Click Add Payment Schedule or Split Payments
3. Configure milestones
4. Save the schedule

From an Estimate

1. Create your estimate
2. Add payment schedule before sending
3. Customer sees payment terms when reviewing

Schedule Configuration

Milestone Setup

Define each payment milestone:

Field	Description	Example
Name	Milestone description	"Deposit"
Percentage	Portion of total	50%
Or Amount	Fixed dollar amount	$2,500
Due	When payment is due	"Upon signing"

Common Payment Structures

50/50 Split

Milestone	Percentage	Due
Deposit	50%	Upon approval
Final	50%	Upon completion

30/40/30 Split

Milestone	Percentage	Due
Deposit	30%	Upon approval
Progress	40%	At 50% completion
Final	30%	Upon completion

Custom Milestones

Milestone	Amount	Due
Deposit	$1,000	Upon signing
Materials	$3,500	Before materials order
Rough-in complete	$2,000	After inspection
Final	$1,500	Upon completion

Schedule Templates

Save commonly used schedules:

1. Go to Settings > Payment Schedules
2. Click New Template
3. Configure milestones
4. Save template

Using Templates

1. Create invoice or estimate
2. Click Apply Payment Schedule
3. Select template
4. Amounts auto-calculate

Due Date Options

Set when each milestone is due:

Option	Description
Upon approval	When estimate signed
Upon receipt	When invoice sent
Specific date	Calendar date
Days from start	X days after project start
Upon milestone	When work reaches stage

Customer View

Customers see the payment schedule clearly:

• Total project amount
• Each milestone with amount and due date
• Which payments are complete
• What's due now
• Remaining balance

Tracking Milestone Payments

Payment Status per Milestone

Status	Meaning
Pending	Not yet due or paid
Due	Payment due date reached
Partial	Some payment received, balance remains
Overdue	Past due, unpaid or partially paid
Paid	Full milestone amount received

Note: Milestone due date calculations use your organization's timezone.

How Payments Apply

When a payment is received, it applies to milestones in order:

1. Payments go to the oldest unpaid milestone first
2. If payment exceeds milestone amount, remainder applies to next milestone
3. Each milestone shows its own paid/remaining amounts

Recording Payments

When a milestone payment is received:

1. Open the invoice
2. Find the milestone
3. Click Record Payment
4. Enter payment details
5. Milestone updates to Paid or Partial

Online payments record automatically.

Partial Milestone Payments

If customer pays less than a milestone amount:

• Payment applies to current milestone
• Balance remains on that milestone
• Status shows "Partial"
• Customer can pay remainder later

Modifying Schedules

Before Customer Approval

• Edit freely
• Adjust percentages or amounts
• Add or remove milestones

After Customer Approval

• Requires new agreement
• Consider change order process
• Document any modifications

Notifications

For You

• Payment received alerts
• Milestone due reminders
• Overdue notifications

For Customers

• Payment schedule included in estimate/invoice
• Milestone due reminders
• Payment confirmation emails

Best Practices

1. Collect deposit first - Don't start work without it
2. Match milestones to deliverables - Tie payments to visible progress
3. Be specific about "due" - Clear dates prevent disputes
4. Document in writing - Payment schedule part of contract
5. Send reminders - Before milestones come due

Benefits of Payment Schedules

For You

• Better cash flow
• Reduced risk of non-payment
• Funds for materials and labor
• Clear payment expectations

For Customers

• Spread out payments
• Pay as work progresses
• Verify work before final payment
• Budget planning

Example Scenarios

Home Renovation ($20,000)

Milestone	Percentage	Amount	Due
Deposit	25%	$5,000	Upon signing
Demolition complete	25%	$5,000	Week 1
Rough work complete	25%	$5,000	Week 3
Final walkthrough	25%	$5,000	Upon completion

Monthly Service Contract ($600/month)

Milestone	Amount	Due
Month 1	$600	1st of month
Month 2	$600	1st of month
(continues...)

---

Previous: Getting Paid Online Next: Tracking Payments