# Appliance store step 5: sell on instalments

> Sell an AC or fridge with a down payment and monthly payments using part payments, pay terms, credit limits and the customer ledger in SmartPOS Hub.

Source: https://docs.smartposhub.com/business-types/appliances/step-5-sell-on-instalments/  
Last updated: 2026-10-30  
Product: SmartPOS Hub (https://smartposhub.com)

Many customers buy an AC or a fridge on instalments: a **down payment** today and **monthly payments** after that. SmartPOS Hub does this with **part payments on one invoice**. This page walks through a real example we recorded in a demo store: a 721.65 sale, a 200 down payment, then a 260 instalment, leaving 261.65 due.

## How instalments work in SmartPOS Hub

| Piece | What it does | Where |
|---|---|---|
| **Pay term** | When the unpaid balance is due (days or months) | Customer's **Balance & credit**, or on the sale |
| **Credit Limit** | The most this customer may owe in total | Customer's **Balance & credit** |
| **Down payment** | First payment entered at the sale | POS **Multiple Pay**, or **Add Sale › Add payment** |
| **Instalments** | Each later payment against the same invoice | **Sell › All sales › Actions › Add payment** or the customer's **Add payment** |
| **Payment status** | **Due** (nothing paid), **Partial**, **Paid** | Sales lists and the customer's **Sales** tab |
| **Ledger** | Every invoice and payment with the running balance | Customer page › **Ledger** |

**Note:** 
There is no separate instalment-plan module and no automatic schedule. You agree the plan with the customer, note it on the sale, and record each payment when it arrives.

## Before you start

- The customer is saved as a named contact with a mobile number. Never put a credit sale on **Walk-In Customer**: you would not know who owes the money.
- You know the plan: total, down payment, number of months.

## Step 1. Set the customer's pay term and credit limit

1. Open **Contacts › Customers** and click **Add** (or edit an existing customer).
2. Fill **Type & name** and the **Mobile** number.
3. Open **Balance & credit**. Enter the **Pay term** (for example **1** **Months**) and a **Credit Limit** (leave blank for no limit).
4. Save.

![Add a new contact window with contact type Customers, name Docs Demo Bilal Ahmed, mobile number, and the Balance and credit section with opening balance 0, pay term 1 Months and credit limit 1500](https://docs.smartposhub.com/_astro/customer-pay-term-credit-limit.jYF6LYve.png) (web app page: `/contacts?type=customer`)
*Pay term and credit limit are in the customer's Balance & credit section.*

## Step 2. Sell with a down payment

1. Open **Sell › Add Sale** (or the POS).
2. Choose the customer. The pay term is filled in from the customer; change it on the sale if this plan is different.
3. Add the appliance (type its serial number in the line's box) and any installation or delivery service.
4. Set **Status** to **Final**.
5. In **Add payment**, enter **only the down payment** as the **Amount** (here 200 of 721.65) and the payment method. The **Balance** shows what is left (521.65).
6. Write the plan in **Sell note**, for example "Down payment 200, then 2 monthly payments, due on the 30th".
7. Click **Save**.

![Add Sale line for an Ultrabook laptop with quantity 1, unit price 849.00, 15 percent discount, a 1-Year warranty and subtotal 721.65](https://docs.smartposhub.com/_astro/credit-sale-customer-and-item.BIgMGYn3.png) (web app page: `/sells/create`)
*The item on the sale. Our example uses a laptop from the demo store; an AC or fridge works the same.*

![Add payment section of Add Sale with amount 200, paid on date, payment method cash, payment account cash drawer, and balance 521.65](https://docs.smartposhub.com/_astro/down-payment-add-sale.DAFLY9m8.png) (web app page: `/sells/create`)
*Enter only the down payment. The balance stays due on the invoice.*

In the **POS**, do the same with **Multiple Pay**: enter the down payment as the amount and finalise. The POS keeps the rest due. **Credit Sale** finalises with nothing paid.

The sale is saved with payment status **Partial**.

## Step 3. Record each monthly instalment

1. When the customer pays, open **Sell › All sales**, find the invoice (filter by customer or payment status **Partial**) and choose **Actions › Add payment**. Or open the customer's page and click **Add payment**.
2. The window shows the customer, invoice number, total amount and the amount still due.
3. Enter the instalment **Amount**, **Payment Method**, **Paid on** date and a **Payment Note** such as "Instalment 1 of 2".
4. Click **Save**. Print a payment receipt if the customer wants one.

![Add payment window for invoice NY-00281 with customer, total amount 721.65, payment method cash, paid on date, amount 260 and payment note Instalment 1 of 2](https://docs.smartposhub.com/_astro/instalment-add-payment.BxjWbk7d.png) (web app page: `/sells`)
*Each instalment is a payment on the same invoice.*

When the last instalment is entered, the invoice becomes **Paid**.

## Step 4. See what the customer still owes

Open the customer (**Contacts › Customers**, click the name). The top cards show **Total sales**, **Balance due** and how much of the **Credit Limit** is used.

![Customer page with total sales 721.65, balance due 261.65, advance balance 0, credit limit 1500 with 17.4 percent used, and buttons for Add payment, New sale, Send ledger, Add discount and Edit](https://docs.smartposhub.com/_astro/customer-balance-overview.Bhm0YfX9.png) (web app page: `/contacts/…`)
*The customer's page: balance due and credit limit at a glance.*

The **Ledger** tab lists the sale and every payment with the running balance. Download it as **PDF** or send it with **E-mail** / **Send ledger**.

![Ledger tab with account summary total invoice 721.65, total paid 460.00, balance due 261.65 and lines for the sale, a 200 payment and a 260 payment noted Instalment 1 of 2](https://docs.smartposhub.com/_astro/customer-ledger-instalments.BHDFCumZ.png) (web app page: `/contacts/…`)
*Ledger: the sale, the down payment and the first instalment.*

The **Sales** tab shows each invoice with its **Payment Status**, **Total paid** and **Sell Due**.

![Customer Sales tab with invoice NY-00281, payment status Partial, total amount 721.65, total paid 460.00 and sell due 261.65](https://docs.smartposhub.com/_astro/customer-sales-partial.DdzX1Mn8.png) (web app page: `/contacts/…`)
*Sales tab: the instalment invoice is Partial until fully paid.*

## Follow up on late payments

- **Reports › Payment by Age**: unpaid invoices grouped by how many days they are overdue, based on the pay term.
- **Reports › Supplier & Customer Report**: total sales, payments and due per customer.
- **Reports › Sell Payment Report**: every payment received, by date and method, for checking the instalments collected each month.

## Tips and mistakes to avoid

- Always add payments **to the original invoice**. Don't make a new sale for an instalment; that would count the appliance twice.
- Agree and note the plan on the sale so every cashier gives the same answer.
- Keep the down payment large enough to cover your cost of delivery and installation.
- Use a **Credit Limit** for customers who buy on instalments often.

Next: [step 6: after-sales service](https://docs.smartposhub.com/business-types/appliances/step-6-after-sales-service/).

  - [Credit and part payments](https://docs.smartposhub.com/selling/credit-and-partial-payments/)
  - [Customer credit limits and advances](https://docs.smartposhub.com/selling/customer-credit-limits-and-advances/)
  - [Customer ledger](https://docs.smartposhub.com/customers/customer-ledger/)

## Frequently asked questions

### Does SmartPOS Hub have an instalment plan module?

No. Instalments are done with part payments on one invoice. The down payment is the first payment on the sale, each monthly instalment is another payment on the same invoice, and the invoice moves from Partial to Paid when the last instalment arrives.

### Can the system calculate the monthly amount for me?

No. Agree the plan with the customer (for example down payment 30 percent, then 3 equal monthly payments) and write it in the sale note. Each payment is entered by hand when it is received.

### What does the pay term do?

It sets when the unpaid amount is due, for example 1 month or 30 days after the sale. Overdue invoices then show up in Reports › Payment by Age. It does not split the amount into instalments.

### Can I sell with no down payment at all?

Yes. In the POS, use Credit Sale. The whole amount stays due. Always choose the named customer, never Walk-In Customer, so you know who owes the money.

### What happens if the customer's credit limit is reached?

A new credit sale that would take the customer's unpaid balance over their Credit Limit is stopped with a Customer Credit Limit Exceeded message. Leave the limit blank for no limit.

### Can I add a finance charge?

Not automatically. Add a service product such as Instalment service charge to the sale, or include it in the price.

### Can the customer pay several invoices at once?

Yes. On the customer's page, Add payment (Pay Due Amount) takes one payment and spreads it over their unpaid invoices.

### Can I send the customer a statement?

Yes. The customer's Ledger tab can be downloaded as PDF or sent by e-mail with Send ledger.