According to the app settings, ACH payments can only be auto billed on the invoice due date (even if the default is set to “On send date”).
How can ACH payment methods be auto billed if send date and due date are the same? For example, all clients are invoiced and auto billed on the first of the month, but for those with ACH as their auto bill method, invoices are only sent (not billed).
Shouldn’t ACH invoices also be billed if send date and due date are the same?
If believe ACH payments require 10 days notice ahead of time in order to be auto-billed
My understanding was that (at least in the US), the 10 day notification requirement only applies to billed amounts that are different from a preauthorized amount or range (link). Clients have already preauthorized the set monthly amount.
Even if it did apply, how could a client be notified of an upcoming payment using Invoice Ninja without sending them an invoice (which is very different from a notification)?
That’s why ACH can only bill on due date, the invoice is first sent and later billed.
I think we’ll change this in v5 to make the app more flexible and depend on the user to do the right thing.
So auto billing with ACH isn’t possible without sending the invoice in advance? Not only would this be confusing to the client, it would allow them to pay in advance, which would be a compliance / accounting nightmare for business billing in arrears.
Is there any way to change it in the current version? (Either allowing ACH to bill on send, or having an option to send an email notification in advance instead of an actual invoice?) Seems like a simple fix!
It may be possible by changing the code but I don’t have the specific changes to share
This would be for invoiceninja.com (not self-hosted).
Ah, in that case it wouldn’t be possible.
We’ll keep this in mind for the next version of the app.
Is there ETA on the next version? We need to switch to ACH billing, so if current functionality remains the same I’ll have to find a new invoicing solution.
We just released the beta
I was in a meeting this morning where this was one of the topics. Take is as an use case to consider (from USA side). It turns our that if the client, signs a contract where it states the amount and day the debit to the account will occur, then the 10 day notification period is not necessary. So an recurring invoice can be generated and sent on the 1st of every month and have a due date on the 5th. So from a legal point of view, the existence of a contract, turns the sent invoice into a notification of a debit. It would be very nice if the flexibility is included in v5!
Following up on this as I’m now having trouble with the workaround.
I updated a client’s recurring invoice to be sent on the 28th of the month and billed on the 1st. Global auto bill settings are still set To “Send Date”, though my understanding is that ACH will always bill on due date regardless. The invoice was sent on 7/28 with an 8/1 due date, but as of this morning (8/1) it has not been auto billed (paid). All other credit card recurring invoices generated today were auto billed without issue.
How do I get recurring ACH invoices to auto bill? What am I doing wrong? Truly hopeful that ACH auto bill on send is an option in v5.
For ACH the invoice needs to be sent to your client at least 10 days before it’s billed.
Understood - thanks for clarifying. It would be helpful if this information was listed in the Settings, User Guide or Knowledge Base.
While I realize this is currently a requirement in Invoice Ninja, just want to reiterate that it isn’t a legal requirement for US users so long as they have a signed contract specifying the recurring amount / billing date (fairly common). This desperately needs to be addressed in v5 (or the current version if v5 won’t be out of beta for a while)!