Keep plan payments separate from new trading invoices

A receipt may cover a different obligation

A customer is paying an old debt by instalments while continuing to buy from your business. Money arrives and the team marks the plan as current, but the remittance refers to a new invoice. Keep the two streams clearly identifiable. Obtain advice on the agreed allocation and terms so a payment for fresh work does not conceal a missed commitment under the older arrangement.

Establish the agreed account structure

Imagine a supplier accepting a long plan for an overdue balance while new orders are paid on different terms. Record the plan amount, instalment schedule and new-trading arrangement separately. Ask the lawyer and accountant how receipts should be handled under the actual documents. Do not assume that the business can reallocate every payment to whichever balance it most wants to reduce.

Track invoices and receipts accurately

business.gov.au recommends keeping track of invoices and payments. Preserve remittance information and reconcile the receipt to the relevant obligation. If the customer provides no usable reference, seek clarification through the proper channel. Avoid marking both an instalment and a new invoice as paid by the same receipt simply because the customer has made only one transfer that week.

Source: business.gov.au: How to invoice

Show the plan position independently

In the supplier's example, the customer might be current on new invoices but late on an old-debt instalment. Report that distinction to the responsible person. The reverse can also matter. A single net customer balance can obscure which agreed payment has been missed and whether new trading is adding further exposure while the historical debt is being reduced.

Handle discrepancies through the documented process

Keep disputed allocations and missed instalments visible and obtain advice about the appropriate response. Do not improvise a default notice or assume an acceleration clause applies without review. Continuing to supply may raise contractual and commercial questions of its own, so seek advice before changing performance or agreeing a new arrangement in a routine accounts email.

Reconcile before reporting completion

When the customer says the plan is finished, check every instalment and adjustment against the agreed terms. Keep new trading balances separate and obtain advice before releasing any security or other rights. A clear allocation record helps the business know what has actually been paid, instead of mistaking activity on a continuing customer account for performance of the long repayment plan.