Scheduled payments are not used extensively in Microsoft Dynamics GP, but they can be quite helpful if you need to record scheduled invoices to post over time. If you want to pay off an invoice in installments, in payables management, or if you have negotiated with a customer to allow them to pay a large bill over time, scheduled payments can be helpful. They are available in both the receivables and payables management modules and work similarly in both. We’ll look at this feature in Payables Management.
First, you will need a posted and open/unpaid invoice in payables against which to create the schedule. You can then enter the schedule:
Payables Scheduled Payment Entry
Purchasing Page | Transactions | Scheduled Payments
To create a schedule, select the original document that will form the basis of the schedule, and then enter additional information:
- Schedule Document Date
- This will be used for the credit memo to offset the original document.
- Schedule Amount
- This will be the portion of the selected document to be moved to the Payables Offset account specified below
- Posting Accounts
- When the schedule posts, it will move the schedule amount from Accounts Payable to the Payables Offset. As each individual scheduled invoice is posted, it will attribute the appropriate amount to Interest Expense and move the invoice amount from the Payables Offset back to Accounts Payable.
- Schedule Interest Rate
- If you want the schedule to calculate and post interest expense, enter the rate here. You can also specify if the interest is compound or simple.
- Number of Payments
- Payment Frequency
Click “Calculate” and the system will calculate the payment amount based on your settings.
Click the Calculate Button
Click “Amortization” to view, and possibly edit, the created Amortization Schedule.
Payables Amortization Schedule Window—Amortization Button
If you entered a Schedule Interest Rate on the previous screen, you cannot edit the payment amounts displayed here. However, if you didn’t enter a Schedule Interest Rate, you can adjust the payment amounts to meet your specific needs (e.g., 40/60 split, etc). Simply click in the Payment Amount field and adjust as needed.
Payables Amortization Schedule Window—With Payment Amounts Adjusted
Click OK to return to the Payables Scheduled Payments Entry window. You can then click “Save” to save the schedule for review or “Post” to post the schedule and create the individual scheduled transactions. When you post the schedule, the original invoice is credited for the amount of the schedule and individual scheduled invoices are created for posting based on payment number and frequency.
Even after you have posted the schedule, you can return to the Payables Scheduled Payments Entry window to view the schedule, although the information you can modify is limited.
To view the created scheduled invoices, use the Post Scheduled Payments window.
Post Payables Scheduled Payments window
Purchasing Page | Routines | Post Scheduled Payments
You can then post the individual invoices created as needed based on the dates and frequency of your schedule. Mark the checkbox for the invoices you wish to post, then click “Post” at the top of the window.
You can use the blue-underlined Schedule Number link to view the schedule as needed. If you modified the payment amounts, the link to view the schedule will only show the original default amounts, not your modified ones. The modified amounts, however, will post properly.
Payables Transaction Inquiry—Vendor
Purchasing Page | Inquiry | Transaction by Vendor
Note the invoices post with the updated amounts and can then be paid based on their due dates over time. Conversely, you can post the invoices on a regular basis over time to control when they are paid.
For questions concerning using scheduled payments in Receivables Management or Payables Management, or for assistance in setting this functionality up to meet your needs, please contact our Microsoft Dynamics GP support center by email at firstname.lastname@example.org.