> For the complete documentation index, see [llms.txt](https://docs.rubica.au/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rubica.au/proposals/payment-plans.md).
# Payment Plans
A payment plan splits what a client owes on one invoice into several direct debits on dates you choose. For example, a $4,800 invoice can become four monthly payments of $1,200.
**The invoice itself doesn't change.** It keeps the same invoice date, due date and total in Xero. Only the way it's collected is split. Each payment is applied to the invoice in Xero as it settles.
Once the plan is set up, you can [send the client their payment schedule](/proposals/sending-a-payment-schedule.md) so they know exactly what comes out and when.
***
### Before you start
* You need the **Manage Payment Plans** permission. If you don't see **Payment plan** on an invoice, ask your admin.
* The invoice must have something owing, and it can't be voided or deleted in Xero.
* Your firm may set a minimum invoice amount for payment plans. Below it, **Payment plan** is greyed out, and hovering over it shows the minimum.
* The client needs a payment method saved for direct debit. See [Payment Methods](/proposals/payment-methods.md).
***
### Set up a plan
Setting up a payment plan from the Invoices card
1. On the engagement (Opportunity), go to the **Invoices** card.
2. On the invoice, click **Payment plan**. The window shows the invoice, how much is owing and the account the payments come from.
3. Make three choices at the top:
* **Split into**: how many payments, from 2 to 24. Underneath, it shows what each payment will be, for example *4 payments of $1,200.00*.
* **First payment on**: the date of the first debit. It starts on the invoice's current collection date, or today.
* **Then every**: **Week**, **Fortnight** or **Month**.
4. Check the schedule underneath. Rubica fills in each payment's date and amount. You can change any of them:
* Change a **date** or an **amount** directly in the row.
* **+ Add a payment** adds another row. **×** removes one.
* **Spread evenly** shares the amount owing equally across the payments again, keeping your dates.
5. Check the line under the schedule. It must say **Matches the amount owing**. If it shows an amount still to allocate, or over the amount owing, adjust the payments until it matches.
6. Click **Set up payment plan**.
A green bar confirms the plan, for example *Payment plan set up. 4 payments · first on 15 Dec.* Click **Send schedule to client** in the bar to send the client their schedule straight away.
**The Set up button stays greyed out until the plan is valid.** The payments must:
* add up to the amount owing
* be dated today or later
* be at least 5 business days apart (your firm may use a different number)
A payment that's too close to the one before shows a warning under its row. A direct debit takes a few days to settle, so a payment that close would be skipped.
***
### If a payment fails
Click **If a payment fails** in the set-up window to choose what happens. The closed heading shows the current choice.
* **Retry it, and hold the later payments** (the default). The later payments wait, then move out by however long the retry took.
* **Retry it, and keep the later payments on their dates.** Two debits can land close together.
* **Don't retry it.** The plan pauses on the first failure. Nothing is debited again until someone picks it up.
The window also explains your firm's retry rule. A payment that fails for lack of funds, or a temporary bank error, is tried again after 3 days, up to your firm's limit. A payment that fails because the account details are wrong, the account is closed or there's no direct debit authority is never retried. It stops straight away and waits for someone to sort it out.
***
### Follow a plan
An invoice on a plan shows **Payment plan** in the **Collection** column, with a progress bar and a note such as *1 of 4 · next 15 Jan*. The plan's payments are listed underneath the invoice. Click **Hide plan** or **Show plan** to collapse or open them.
The heading shows how many payments have been collected, who set the plan up and what happens if a payment fails. Each payment shows its status:
| Status | What it means |
| ------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Scheduled** | Waiting for its date. You can **Move** it. |
| **Collected** | Debited and applied to the invoice in Xero. Click **Receipt** to see the receipt. |
| **Failed** | The debit didn't go through. The reason shows underneath. Click **Retry now** to try it again in the next collection run. |
| **Held** | Waiting for a failed payment to clear, then moving out by the same delay. |
***
### Move one payment
Moving one payment to a new date
1. Next to the payment, click **Move**.
2. Pick the new date under **Collect on**.
3. Click **Move payment**.
Only that payment moves. It has to stay at least 5 business days (or your firm's number) from the payments either side of it. If it's the next payment due, the invoice's collection date moves with it.
If the client's dates change, remember to [send them an updated schedule](/proposals/sending-a-payment-schedule.md).
***
### Cancel a plan
1. In the plan's heading, click **Cancel plan**.
2. Read the warning, then click **Cancel plan** to confirm (or **Keep the plan**).
The remaining payments are cancelled and automatic collection on the invoice is paused. Nothing is debited until someone schedules the balance again or sets up a new plan. Payments already collected stay as they are.
***
### Common questions
**Does the plan change the invoice in Xero?**\
No. The invoice keeps its date, due date and total. Each payment is recorded against it in Xero as it settles, so the amount due goes down with each payment.
**Can a client have more than one plan?**\
Each invoice can have one active plan. A client with several invoices can have a plan on each. The [payment schedule](/proposals/sending-a-payment-schedule.md) shows all of them together.
**Why is Payment plan greyed out, or missing?**\
Greyed out means the invoice is under your firm's minimum for payment plans. Hover over it to see the minimum. If **Payment plan** isn't there at all, the invoice is already on a plan, has nothing owing, or is voided or deleted in Xero, or you don't have the **Manage Payment Plans** permission.
