Payment schedules are great when offered payment by installed or when offering clients this flexibility. But how do payment schedules work in D365 for Finance?
A payment schedule can be select by entering invoices or they can be defaulted on the terms of payment record. The schedule can also be defaulted on the supplier or customer master record.
The payment schedule first due date is calculated via the terms of payment. Other payment lines are calculated based on the allocation method. There are four allocation methods:
Total; no allocation
Fixed amount; splits payment based on the invoice value
Fixed quantity; splits payment based on a specified number of payments
Specified; splits based specified periods and percentage
You can specify the minimum installment amount. Minimum amounts override calculated payment amounts.
Maximum amount, Minimum amount and Flexible plan parameters are only available if 'Call center' is enabled. These parameters are used to allows customers to determine the number of installment payments they will make for an order.
Fixed amount
The fixed amount requires the following three parameters.
Payment per, eg. month, skip period for next due date
Change, eg. 1, skip 1 month for next due date
Amount, eg. 100, divide amount by amount to determine number of payments
Figure 3 Payment lines fixed schedule per 100
Fixed quantity
The fixed quantity requires the following three parameters.
Payment per, eg. Days, period for next due date
Skip change, eg. 30, skip 30 days for next due date
Number of payments, eg. 5, divide invoice amount in 5 payments
Figure 4 payment lines 5 months
Specified
The specified allocation method requires users to specify payment lines based on percentages. The ‘Payment per’ is used to allocate the payment to the correct period.
Figure 5 Payment schedule setup
Figure 6 Payment schedule Specified 30%, 20% after 1 month and 50% after 5 months
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