Cloud has two built-in payment-related requirements that you will need to configure to collect payments for the project: the Payment Schedule Template and the Payment Term. Cloud provides some default payment schedule templates and payment terms.
A Payment Schedule Template defines how the overall project payment is broken down into payment milestones. For example, a payment schedule template that has a deposit and 4 other payment milestones, with the remaining amount split equally across the milestones
A Payment Term defines the number of days within which the customer should pay after an invoice is sent for the payment milestone. For example, a payment term NET 30: pay within 30 days of receiving the invoice.
Add payment schedule templates
To add a payment schedule, go to "Settings > Quote > Payment Schedules."
With "Payment Schedule" being a new feature and terminology substituted in the R101 release for "Payment Term," you will find all existing payment terms under the "Legacy" tab on the Payment Schedules page.
R101 release also introduces "Dynamic Calculations," a feature that allows you to create dynamic payment schedules that base the payment amount for a milestone on the total value, product value, labor value, or the value of the adjustments applied to the quote.
You can create either a legacy payment schedule template or a dynamic one.
Dynamic payment schedule template
Under the Dynamic tab, do the following:
1/ Click "New payment schedule" in the top-right corner.
2/ Add a name for the template.
3/ Add a name for the first milestone, mostly "Deposit."
4/ Select how you want tax to be applied to the milestone.
5/ Under "Calculations," you can do the following:
a/ Retain the toggle at "Percentage" and specify a percentage and select the value it has to be based on: Total, Products, Labor, or Adjustments.
b/ Switch the toggle to "Fixed" and specify the amount for the milestone.
c/ If you want to add another calculation, click "Add calculation" and add it by either step a or step b.
d/ To delete a calculation, click the "Delete" icon to the right of the calculation.
6/ Click "Add milestone" and add another milestone with instructions from steps 3 to 5.
7/ When you are done adding the milestones, click "Save."
Legacy payment schedule template
Under the Legacy tab, do the following:
1/ Click "New payment schedule" in the top-right corner.
2/ Add a name for the template.
3/ You can specify the milestones in three ways:
Percentages of the total amount paid over multiple milestones
For example, a 30% deposit upon acceptance of the proposal and the remaining 70% upon completion of the project.
Fixed amounts paid at one or more milestones
For example, a $500 deposit upon acceptance of the proposal and two $ 1,000 payments during the project.
A combination of percentages and fixed amounts paid over multiple milestones
For example, a $500 deposit upon accepting the proposal and two 50% payments during the project.
The following screenshot shows a legacy payment schedule template with a combination of fixed amounts and percentages.
4/ When you are done adding the milestones, click "Save."
Set default payment schedule template
If most of your projects follow a similar payment schedule, you can set a payment schedule template as the default. You can set a default payment schedule template for change orders, too.
If needed, you can set one payment schedule template as the default for both quotes and change orders.
Key notes about payment schedule template
The billing and due dates for payment milestones in the template are defined in the quote. If you include the dates in the quote, the proposal will reflect them.
Check out this article for more details.
If you do not want to show the dates for the payment milestones in the proposal, you can add them in the Project view once the opportunity is won.
Check out this article for more details.
Add payment terms
You can add multiple terms and select the appropriate term at the payment milestone level.
To add payment terms:
1/ Go to "Settings > Payment > Payment Terms."
2/ Click "New payment term" in the top-right corner.
3/ In the modal, add a name and the number of due days for the term.
4/ Click "Create."
If you want to make a payment term the default, click the 3-dot menu of the term and click "Set as default."