Create a payment plan
Find out how to create and manage flexible payment solutions for your customers.
Overview
Payment plans offer a flexible solution for managing outstanding balances. Admin or Accounts Receivable users can now create payment plans in Cut+Dry that collect regular payments toward a customer's balance until it's fully paid, a set number of installments is reached, or the plan is manually terminated.
Payment plans are designed to be flexible and automated, requiring minimal ongoing management once established. The system handles payment processing, invoice application, and customer communication automatically.
Payment plans simplify reconciliation by automatically applying installments to a customer’s invoices.
- For customers with multiple unpaid invoices, payments are applied to the invoice with the earliest due date first. Once that invoice is paid in full, the plan moves to the next oldest invoice.
- If multiple invoices share the same due date, payments are applied to the invoice created first.
- If an invoice’s remaining balance is less than the scheduled payment amount, only the remaining balance will be charged, preventing overpayments.
Follow these steps to create a payment plan.
Create a payment plan
1. Select Customer from the navigation menu, then click on the customer account.
2. Go to the Payment Plans tab.
3. Click Create New Payment Plan.
Tip: you need to have at least one authorized payment method to create a payment plan. To do this, first add a payment method, then enable capture funds.
4. Enter the details for your plan, then click Create Plan.
- Plan Name (Required): Enter a name for the payment plan.
- Installment Amount (Required): Specify the dollar amount for each installment. The payment plan will deduct this amount from the payment method until all outstanding balance is fully paid, the predefined number of installments is reached, or the plan is manually stopped.
- Number of Installments (Optional): Define the number of installments the payment plan will process. If set, the plan will stop after reaching this number, even if an outstanding balance remains. If not specified, the plan will continue until the balance is fully paid.
- Payment Frequency: Select how often payments will be made (e.g., weekly, monthly).
- Payment Method: Choose the payment method for withdrawals. Only authorized payment methods will be displayed.
- Start Date: Specify the date for the first payment.
Result
The payment plan is created and will commence on the start date selected. Your customer will receive an email notification about their plan.
Important: You cannot edit a payment plan. To make changes, stop the current plan and create a new one.
Delete a payment plan
Result
The payment plan will stop immediately. Your customer will receive an email notification.
Payment plan notifications
The following email notifications will be sent.
1. Plan created - a confirmation sent to you and your customer that a new payment plan was created.
2. Upcoming payment - a reminder is sent to the customer before each scheduled payment.
3. Payment success or failure - a confirmation sent to you and your customer that the payment was successful or failed.
4. Plan stopped - a confirmation sent to you and your customer that the payment plan is stopped.
