Change Installment Plan - Supplier

Explanation

This activity is used to divide the payment of the invoice into several payment occasions, or to adjust any discount per payment term. 

It is possible to divide a payment for a supplier invoice into several partial payments in the Supplier Invoice Installment Plan and Discounts dialog box. You can delete, add, or edit planned payment lines here. To change the date of a planned payment, you need to delete the line and then enter a new line with the new date. The sum of amounts of the planned payment lines in the dialog box must equal the gross amount of the invoice. For each installment of the invoice, you can specify interest and fine information by opening the Interest and Fine dialog box. Interest and fine applies to installments when the installment payments are delayed.

If the supplier payment is to be made by check, a check handling code can be entered. The code states the sort order used when printing checks. If no check handling code is used, the sort order of the printing is set to the lowest level.

In the Check Recipient field, use the List of Values to select Payee or Payment Institute. This value decides what name and address will be printed on the check. If Payment Institute is selected, the payment institute description and the address of the office that the cash account is connected to will be printed.

For regular suppliers you can connect a payment method and a payment address ID to an installment if a specific payment method and/or payment address shall be used in a payment proposal. For a one-time supplier, payment method and address ID can only be connected in the One-Time Specific Information dialog box.

When new installments are created, the value from the supplier will be copied by default, but can later be changed.

Invoices, where withheld tax is reduced from the payment to be made to the supplier, will get a separate payment plan for the withheld tax amount. This payment plan line is created and authorized automatically when the invoice is posted and cannot be changed. The withheld tax would have been reduced from the supplier debt as a payment transaction at the same time the invoice was posted. For invoices containing withheld tax, any payment plan that might already exist when the invoice is posted will be reset. One payment plan line concerning the withheld tax and one payment plan line concerning the amount to be paid to the supplier will be suggested.  

Prerequisites

An invoice with basic information such as supplier, invoice number, and amount must be in state Create or TaxWithheldPosted.

System Effects

As a result of this entry, the original payment date and amount is divided into several occasions and amounts.

The payment method connected to an installment is included in the choice of payment methods when a supplier payment proposal is loaded. Both the payment method and the payment address of the installment are suggested when the installment is included in a payment proposal.

Window

Manual Supplier Invoice

Related Window Descriptions

Manual Supplier Invoice

Procedure

To enter or change an existing payment plan:

  1. Select the Manual Supplier Invoice window. Query to find existing invoices or enter a new invoice.
  2. If you want to change the payment plan of an existing invoice or enter a new payment plan for a new invoice, right-click and then click Payment Plan and Discounts. The Supplier Invoice Installment Plan and Discounts dialog box opens.
  3. If you want the supplier invoice payment to be made by check, specify a code in the Check Handling Code field in the header part of the dialog box by selecting the appropriate code from the List of Values.
  4. In the first table, enter installments and the payment dates and amounts to be paid for each installment. If you change existing installment plans, modify the values in their respective fields. The total amount to be paid for all installments must equal the invoice amount.
  5. In the Check Recipient field, select either Payee or Payment Institute as the default check recipient for the supplier, if the payment is to be made by check. The selected value will appear by default in all the installments created for the supplier.
  6. If you want the installment to be paid using a specific payment method and a payment address of the supplier, enter the required values in the Payment Method and Payment Address ID fields. The List of Values can be used to select the relevant payment method and payment address ID.
  7. Select the Exclude From Interest Provision check box for installments that you want to exclude from supplier interest provision calculations.
  8. If you want to specify interest and fine details for the installments, click Int. and Fine to open the Interest and Fine dialog box.
  9. In the second table, specify discount information for each installment by specifying the installment ID and entering a value for the discount percentage or discount amount in their respective fields.
  10. Specify a date in the Discount Date field which is the same date as or earlier than the planned payment date of the installment.
  11. Save the information.