Scheduled Payments in Microsoft Dynamics GP enables greater automation and better accuracy in any company’s Accounts Payable (AP) Management.
You can choose the interest rate, payment frequency, and other information when you create a payment schedule, and you can create a payment schedule using any posted document. Payment schedules are created from documents. Payment schedules may vary based on the vendor or the kind of goods or services that are being purchased. You can edit any information on unposted payment schedules, as well as the interest and number of payments for posted payment schedules.
When you create payment schedules, you select specific accounts to distribute the interest and principal portions between. The following chart shows what accounts to use and how they are debited and credited. Use the Payables Scheduled Payments Entry window to enter payment schedules. When you are creating a payment schedule, the information from the original invoice will appear in several fields in the window.
- First, Open the Payables Scheduled Payments Entry window. (Transactions → Purchasing → Scheduled Payments)
- Enter a schedule number and description.
- Select the original document number. Default entries will appear in multiple fields in this window after you have selected a document.
- Verify the date in the Schedule Document Date field. The default entry comes from the original invoice and is the general ledger posting date.
- Enter the schedule amount. The default entry in this field is the total schedule amount, and it is equal to the amount remaining on the original invoice.
- Mark either compound or simple interest. Enter the rate in the Schedule Interest Rate field. If you enter 1, the interest rate will be 1%. (Simple interest is calculated from the first payment rather than the schedule date. If a
payment schedule is created from an existing invoice, the interest is calculated from the
date of the original invoice.)
- Enter the number of payments for the payment schedule.
- Enter or select the payment frequency. This field is used to define how often payments will be made.
- Select the dates, and verify and enter the accounts for the payment schedule.
The default entries are from the original document.
- Choose Calculate to update the amount displayed in the Calculated Payment Amount field.
- Choose Amortization to open the Payables Amortization Schedule window, where you can view the payment schedule’s amortization schedule and edit the due date and the payment amount for each line.
- Choose Save to save the payment schedule or Post to post it.
If you are using vendor approval workflow, the vendor must have the workflow status of Approved or No Approval Needed before you can post.
If you post the transaction, the Payables Scheduled Payments Posting Journal, Payables Posting Journal, Distribution Breakdown Register – Detail, and Distribution Breakdown Register – Summary will print when you close the window.