Short payments and payment discounts

Customers do not always pay the full amount. Here is what happens to commission when an invoice is paid in parts, closed with a payment discount or a payment tolerance, or when a payment is unapplied.

Partial payments

With Pay When set to As Customer Pays, the payable commission follows the share of the invoice the customer has paid.

Example: an invoice of 1,000.00 earns 60.00.

1. On 5 March the customer pays 400.00. 40% is paid, so 24.00 becomes payable, dated 5 March.
2. On 20 March the customer pays 600.00. The invoice is paid, so the other 36.00 becomes payable, dated 20 March.

With When Fully Paid, step 1 makes nothing payable and step 2 makes all 60.00 payable.

The commission is released in the same steps as the customer's payments.

The release date is the date of the payment that made the commission payable, not the date the release job ran.

Payment discounts and payment tolerance

A payment discount or a payment tolerance that closes the invoice counts as fully paid. By default the full commission becomes payable.

To pay commission only on what the customer actually paid after a payment discount, turn on Reduce Commission by Payment Discount on Commission Setup. The discount then reduces the invoice's commission in the same proportion, like a credit applied to it: a 2% payment discount on an invoice that earned 60.00 releases 58.80. A payment tolerance always counts as paid in full.

Short payments that leave the invoice open

If a customer pays less and you leave the rest open, the invoice is not fully paid:

• When Fully Paid commission stays waiting.
• As Customer Pays commission is payable for the share paid.

When you write off the rest, the commission becomes payable for the invoice as closed. If you do not want to pay commission on a write-off, post a credit memo for the unpaid part instead, so the commission is taken back. See Returns and clawbacks.

Unapplied payments

Unapplying a payment makes the commission waiting again. The release job lowers the payable amount. If it was already paid, the next settlement claws it back.

Example: 1,000.00 paid, 60.00 released and paid. The payment is unapplied: payable 0.00, paid 60.00, so the next settlement takes back 60.00.