Once you have an installment payment term setup, its simple to make adjustments directly on the invoice prior to it being posted. In the article below, we will take a look at making those adjustments on the fly.
Note: This can only be done prior to the invoice being created.
Note 2: When creating the invoice, be sure to input the posting date & necessary payment information before changing the installment terms.
Step By Step Guide
- When you are creating the invoice, click on the Accounting tab.
- Click the golden arrow () in the Installments field, to open the Installments window.
- Next, define the number of installments payments required for this invoice.
- You will receive a prompt as to whether the amount of the invoice is to be divided equally amongst all payments. This will be based on the terms of your agreement.
- Next you will define the due dates for each payment by clicking into the date field and selecting the date from the calendar.
- Once you are finished, press the Update button as soon as you do, the Due Date of the invoice will change to be based on the final installment due date. Then press the OK button to confirm the changes to the installments.
- Now add the invoice as you would normally.
What does the outgoing payment look like?
Opening an Outgoing Payment for this supplier will now show 4 payments that are due on the specified dates, each with an installment number identified (1 of 4, etc).
TIP: Click on the Form Settings () icon to display a list of fields available, add the Due Date field to display the actual due date of the installment payment.
What do the journal entries look like?
When the invoice is created, 4 credits (in this example) are booked against the Fish Scientific A/P sub-ledger. Exposing the Ref 3 field will display the installment number for each.
Related Article: How do I setup installment payment terms?