Use this workflow when a back charge is too large to deduct in one pay period, but you still pan to pay the installer again and want to recover the amount by reducing money you owe them over time.
This method works by creating multiple negative provider records for the same back charge, marking them Do Not Pay, then releasing one installment per pay period.
When to Use this Method
| Use this method when… | Use a different method when… |
|---|---|
| You want to recover the back charge by withholding pay over multiple pay periods. | You want the installer to pay you directly (cash/check/card). |
| The installer is active and you expect future pay periods to occur. | You need a formal A/R balance to track what they owe and apply payroll A/R deductions until it’s paid. |
| You do not need retainage involved. | You need to recover the back charge from retainage (active or inactive installer). |
Before You Start
Decide the installment plan first. You’ll need the back charge total and how you want to split it (equal amounts are easiest to manage).
| Back charge total | Installments | Amount per pay period | Number of pay periods |
| $900.00 | 3 | $300.00 | 3 |
Also decide where you want the records to live. Most teams store the provider records on the order/job that best represents the back charge so it’s easy to find later.
- Open the order/job where you want to record the back charge.
- Add a provider record for the installer for the first installment amount. Enter it as a negative amount.
- Set the provider record to Do Not Pay, then save it.
- Repeat until you have one negative provider record per installment.
What this accomplishes: you've entered the full back charge into RFMS, but none of it will reduce pay until you release installments.
Traceability tip: In the provider record notes/description, add the original customer job/order number and a short reason (example: "Job 104533 - broken countertop"). This prevents "mystery deductions" later.
At the start of each pay period, release the next installment you want to apply.
- Find the next provider record that is marked Do Not Pay.
- Charge it to your normal payable status (often OK to Pay).
- Save the change, then run provider pay as you normally do.
Only release one installment unless your process intentionally takes more than one payment at a time.
Use this quick confirmation after you run provider pay:
| Confirm this | Where | You should see |
|---|---|---|
| The correct installment was released | Provider record list/detail | One record is payable; the remaining installments are still Do Not Pay |
| Pay was reduced by the right amount | Provider pay reporting | The installer’s pay is reduced by that installment amount |
Keep It Under Control
Do Not Pay records are easy to forget. To keep them visible, review Do Not Pay provider records on a regular schedule and use a consistent description (for example, ‘Back Charge Installment 1 of 3’). If your system supports it, a dedicated pay status like ‘Do Not Pay – Back Charge’ can make these records easier to filter.
Troubleshooting
| Issue | What usually happened | Fix |
|---|---|---|
| The back charge didn’t reduce pay | The installment is still Do Not Pay | Release it (set to payable), then rerun provider pay as needed |
| Too much was deducted | More than one installment was released | Put the extra installments back to Do Not Pay before finalizing the pay period |
| No one can tell what the deduction was for | Notes were left blank | Add job/order reference and reason to the provider record notes |
| Old Do Not Pay records are piling up | No routine review step exists | Add a recurring review of Do Not Pay provider records |
Related Articles
- Negative Provider Records: Correct a Paid Error or Back Charge a Provider
- Adding Provider Records
- Provider Earnings / Provider Earnings History Report
- Record an Installer Back Charge in RFMS
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