What is Partial Payment?
Partial payment is the payment of an invoice when only a portion of the invoice remains unpaid.
For example, you make a down payment for a car that is a little more than a third of the invoice amount. This is considered a partial payment.
Why are partial payments necessary?
Without partial payments, many people would not be able to afford the high cost of certain items. For example, a car or a house. By making partial payments, people are able to spread out the cost of these items over a period of time, making them more affordable.
How Do I Invoice a Partial Payment?
There are two primary ways to invoice a partial payment against an invoice:
- When invoice payments are recorded manually, most software will allow you to indicate an invoice is partially paid (or even automatically determine this because of the disparity between the full amount and what was paid).
- When customers make an online payment, your ecommerce system should indicate that there is still a balance due. Allowing a customer to make a partial payment is up to the discretion of the creditor.