Creating Scheduled Payments in GP

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.

Account	Debit	Credit
Accounts Payable posting account	Debited with the scheduled payment amount, including principal and interest, when an individual payment is posted using the Post Payables Scheduled Payments window.	Credited with the total schedule amount, not including interest, when the payment schedule is posted using the Payables Scheduled Payments Entry window.
Payables Offset posting account	Debited with the total schedule amount, not including interest, when the payment schedule is posted using the Payables Scheduled Payments Entry window.	Credited with the scheduled payment amount, not including interest, when an individual payment is posted using the Post Payables Scheduled Payments window.
Interest Expense posting account	Debited when you post a payment schedule.	Credited with the interest portion of the scheduled payment amount when an individual payment is posted using the Post Payables Scheduled Payments window.

For example, if you use the Payables Scheduled Payments Entry window (Purchasing à Transactions à Scheduled Payments) to enter a scheduled payment with a schedule amount of $2,400.00 using 10% simple interest and 12 monthly payments, the amount due each month is $220.00.

When you post the payment schedule, your accounts will be updated using the following debits and credits.

Account	Debit Amount	Credit Amount
Accounts Payable	$2,400.00
Payables Offset		$2,400.00

When you use the Post Payables Scheduled Payments window (Purchasing à Routines à Post Scheduled Payments) to post one of the 12 individual payments for $220.00, your accounts will be updated using the following debits and credits.

The Schedule Number defaults, Enter the Schedule Description, Choose the Interest Type

Simple - Calculate interest only on the initial principal.
Compound - Calculate interest on the initial principal and also any accumulated unpaid interest.
Choose the Original document number which is the voucher that you created for the full payment. This will populate all the fields (Document type, vendor id, name, Scheduled amount)
If you are charging interest which is based on interest type you can add the Interest rate.
Add the Number of payments it will be divided into
Select the payment frequency

Click on Calculate Button which will calculate the Payment amount

First Invoice Document Date (Enter the invoice date for the first scheduled payment invoice.)
First Invoice Due Date (Enter the due date for the first scheduled payment invoice.)

When you click on the Amortization button (Opens the Payables Amortization Schedule window, where you can view a payment schedule’s amortization schedule. Any unposted lines of the payment schedule can be viewed. If there is no interest, you can edit the due date and the payment amount for each line in the scrolling window.)

Account	Debit Amount	Credit Amount
Accounts Payable		$220.00
Payables Offset	$200.00
Interest Expense	$20.00

When you pay the vendor $220.00 and use the Payables Manual Payment Entry window (Purchasing à Transactions à Manual Payments) to enter the payment, your accounts will be updated using the following debits and credits.

Account	Debit Amount	Credit Amount
Accounts Payable	$220
Cash		$220

Example:

Let’s first create a voucher for the full amount for the total cost.



Once the voucher is created this needs to be posted. After this is posted it prints out various posting journals.

The above is the first step in creating a scheduled payments, next is to create the scheduled payment for the above voucher. GoTo (TransactionsàPurchasingàScheduled Payments)



Check for the posting accounts if all look good. The interest Expense account can be populated once we have a schedule interest rate.

Post button

Creates a credit memo for the schedule amount and applies it to the original document.

Finally you POST the scheduled payment by click on the POST button on the top ribbon

Once the above step is done you go to Microsoft Dynamics GPàToolsàRoutinesàPurchasing à Post Scheduled Payments.

Use the Post Payables Scheduled Payments window to individual invoices for a payment schedule. You can post a single invoice or multiple invoices.

Due Date Cutoff

Enter a date to further restrict the range restrictions; the payment schedules will be restricted to those with due dates less than or equal to the cutoff date

Mark the payment that you want to POST and click on POST.