What happens in your accounting if you’re only paid partly at times? It’s one thing to consider whether it’s acceptable for you, but another to give it a proper treatment in your accounting. 

When you initially take up a receivable, you debit your assets (i.e. “Accounts receivable” or “Other receivables” or something else) and you credit your income, either “Sales revenue” or “Other income”. Now, if you’re paid in full, you’d debit your cash and credit the receivables thus showing you got money and you no longer have this specific receivable outstanding.

However, if you’re only paid partly, it’s the part you debit into cash and the same part you credit off the receivable still leaving part of the balance as unpaid and as a receivable. It’s something you haven’t been paid.

It’s important to keep track on such receivables and to keep them under tight observation nonetheless. Paying only partly is an indication that your client is or may be facing some financial difficulties. If you can handle the late payments, be sure to let them know that there are conditions to such treatment, i.e. they must prepay 50% or that there’s only so much they can into credit with you and so on. And if you cannot handle such late payments since you’ll run into problems your own, let them know and stop such business right then and there.