Managing deferred payments in Shopify involves a systematic approach to ensure you handle outstanding balances efficiently while maintaining good customer relationships. Here's a detailed guide on how you can effectively manage deferred payments for orders with a full or partial outstanding balance:

Setting Payment Terms for Payments Due Later

You can define when the payment is due by setting specific payment terms. This feature is especially useful for orders that aren't paid at the time of purchase but are expected to be paid later.

Options for Setting Payment Terms:

• Due on Receipt: The payment is due on the same day the invoice is sent.
• Due on Fulfillment: The payment is due on the day all items in the order are fulfilled.
• Net Term: The payment is due a specific number of days from the issue date (e.g., Net 30 days).
• Fixed Term: The payment is due on a specific date.

Steps to Set Payment Terms:

1. Navigate to Orders in your Shopify admin.
2. Select the order number.
3. In the Pending section, click Add payment terms.
4. Choose the appropriate payment term and set the due date.
5. Click Save.

Sending an Order Invoice to a Customer

Sending an invoice allows your customer to make payments via a secure checkout link provided in the invoice.

Steps to Send an Invoice:

1. Go to Orders.
2. Click the order number you want to send an invoice for.
3. Click Collect payment > Send invoice.
4. Enter any message you want to include in the invoice.
5. Click Review invoice, then Send invoice after reviewing.

Accepting Payment for an Order Pending Payment

You can update the payment status from Payment pending to Paid using the following methods:

• Mark as Paid: Use this if you have already received the payment outside Shopify or are importing past orders.
• Pay by Credit Card: Use this if you have the customer's credit card details. This method is available only with Shopify Payments.

Steps to Accept Payment:

1. From the Orders page, click the order number.
2. In the Pending section, click Collect payment.
3. Choose Mark as paid or Pay by credit card.
4. If paying by credit card, enter the customer's billing and credit card information, then click Charge.

Setting Payment Reminders

Setting up payment reminders can help ensure customers do not forget their payment obligations, which can improve cash flow.

Steps to Set Payment Reminders:

1. Navigate to Settings > Notifications.
2. In the Orders section, find the Payment reminder section and click Manage payment reminders.
3. Click Add payment reminder.
4. Set the timing for the reminder (e.g., on due date, when payment is overdue).
5. Activate the reminder by clicking Turn on.

By following these steps, you can manage deferred payments more effectively, helping to ensure that your business maintains a healthy cash flow while providing flexible payment options to your customers.