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special "split" payment terms

  • 1.  special "split" payment terms

    TOP CONTRIBUTOR
    Posted Aug 13, 2019 05:15 PM
    Hello Everybody,

    Occasionally, we will give customers payment terms where they can part pay the invoice over a period of time :
    ex: 1/12th of the invoice due each month over the period of 1 year
    ex: 1/3rd net 30 - 1/3rd net 60 - 1/3rd net 90, etc ..

    To my knowledge, GP does not support these sort of payment terms.

    Does anyone have a creative way to handle these, so information is reflected correctly in the aging.
    Is there a 3rd party that expands the payment terms offered by GP?

    We are on GP2015 R2. Thank you for your ideas.

    Kind regards,

    ------------------------------
    Maria Frandzeskakis
    IT Manager
    MIP Inc.
    Anjou QC
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  • 2.  RE: special "split" payment terms

    Posted Aug 14, 2019 08:24 AM
    On your Sales Document you can create line item for each payment and invoice that item when due.

    Example: 12 Payment Lines items for 12 payments, invoice 1 per month, then its it would be due within the payment terms on the account. You can sell your actual good/service at 0 dollars at time of delivery to recognize the cost of goods.


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    Kevin
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  • 3.  RE: special "split" payment terms

    TOP CONTRIBUTOR
    Posted Aug 14, 2019 09:22 AM
    Thank you Kevin.
    We'll keep this in mind.
    Maria.

    ------------------------------
    Maria Frandzeskakis
    IT Manager
    MIP Inc.
    Anjou QC
    ------------------------------

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  • 4.  RE: special "split" payment terms

    SILVER CONTRIBUTOR
    Posted Aug 14, 2019 09:00 AM
    Hi Maria

    The perfect tool is already in Dynamics GP : Scheduled payments. You post your invoice and then with schedule payment you split it in smaller invoices with different due dates

    "You can create scheduled payments for customers who want to spread payments out over time. You'll use the Receivables Scheduled Payments Entry window to create a scheduled payment from a posted sales/invoice, debit memo, or service/repair document. You can choose the interest rate, payment frequency, and other information when you create a scheduled payment. When you post a scheduled payment, a credit memo is created for the remaining amount on the original document. The credit memo is applied automatically to the original document and a series of scheduled invoices, installments of the scheduled payment, are created to replace the original document."

    ------------------------------
    Pierre Deschênes
    Groupe Dynamite
    MONTREAL QC
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  • 5.  RE: special "split" payment terms

    TOP CONTRIBUTOR
    Posted Aug 14, 2019 09:21 AM
    Merci Pierre.
    This sounds promising. Will check it out.
    Maria.

    ------------------------------
    Maria Frandzeskakis
    IT Manager
    MIP Inc.
    Anjou QC
    ------------------------------

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  • 6.  RE: special "split" payment terms

    Posted Aug 15, 2019 09:22 AM
    Can you please give some instructions on how to Scheduled payments and how to post our invoices with schedule payment by splitting it in smaller invoices with different due dates? I can't find the way to do it.
    Thank you,
    Viktoria


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    Viktoria Akselrod
    Zone Labs Inc
    MA
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  • 7.  RE: special "split" payment terms

    SILVER CONTRIBUTOR
    Posted Aug 15, 2019 09:35 AM

    @Viktoria Akselrod

    You need to post your Invoice or Receivables Transaction first, then you can use Scheduled payments​.

    "You can create scheduled payments for customers who want to spread payments out over time. You'll use the Receivables Scheduled Payments Entry window to create a scheduled payment from a posted sales/invoice, debit memo, or service/repair document."



    ------------------------------
    Pierre Deschênes
    Groupe Dynamite
    MONTREAL QC
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  • 8.  RE: special "split" payment terms

    Posted Dec 05, 2019 01:03 PM
    Hi,

    We managed to implement scheduled payments in GP but still have a few issues. One of our issues is how to link a scheduled payment to a invoice. When a customer pays a invoice we now have scheduled payments but we can't see which scheduled payment is associated with which invoice. Is there a smartlist or a way to pull out the scheduled payments and which invoices they were applied against?

    Thanks

    ------------------------------
    Karl Solski
    MIP Inc.
    Anjou QC
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  • 9.  RE: special "split" payment terms

    TOP CONTRIBUTOR
    Posted Dec 06, 2019 10:05 AM
    If you have someone there who is handy with SQL, you might try Victoria Yudin's AR Apply Detail view:  https://victoriayudin.com/2010/02/15/sql-view-with-ar-apply-detail/.  I've never used scheduled payments but I'd like to know if the view still works.

    ------------------------------
    Blair Christensen
    Database Administrator
    Oppenheimer Companies, Inc.
    Boise ID
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  • 10.  RE: special "split" payment terms

    SILVER CONTRIBUTOR
    Posted Dec 07, 2019 12:55 AM
    All,

    It's been a while since I've worked with Scheduled Payments, so I had to run some test transactions as a refresher.

    When a scheduled payment (SP for short in this response) is created and posted in the 'Receivables Scheduled Payment Entry' window (Transactions > Sales > Scheduled Payments), the following tables are populated:

    Scheduled Payment  Entry

    Amortization Schedule

    RM20101

    • A Credit Memo with a Batch Source of 'XRM_SCH_ENTRY' for the amount of the original invoice;
    • A 'notational invoice' also with a Batch Source of 'XRM_SCH_ENTRY' for the amount of the original invoice. **The CURTRXAMT (or remaining balance) of this notational invoice is decremented by SP invoices posted later as part of the SP lifecycle. This document also appears in in the Customer Transaction Inquiry window and when the user 'zooms' on the document it opens the Scheduled Payment Entry window shown in a read-only version of the first screen images above.
    RM20201
    • An apply record to relieve the original invoice by the credit memo above;
    RM20400
    • One record for the SP header with information about the amounts, frequency, interest type and rate (if any), etc. The record also includes the credit memo number that was posted to RM20101;
    RM20401
    • The entire amortization schedule for the SP schedule in RM20400. This table contains the original SCHEDULE_NUMBER and the DOCNUMBER of the SP invoice that will be posted during the schedule's lifecycle;
    -----

    On a monthly/end of period basis, you have to POST that period's Scheduled Payments (Routines > Sales > Post Scheduled Payments). This process creates an 'invoice' type document in RM20101 with a Batch Source of 'XRM_SCH_POSTING' and changes the STATUS of the relevant transaction in RM20401 from 3 to 1.

    Post Scheduled Payments

    Once the SPs are posted, they are available to have cash applied through the normal GP cash receipts process.

    I will create a simple view you can use to see the SP invoices and the original invoice they are related to and reply to this thread soon.

    Hope this helps,
    Jeff

    ------------------------------
    Jeff Pfershy
    Sr Business Analyst
    BluJay Solutions Inc
    Holland MI
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  • 11.  RE: special "split" payment terms

    SILVER CONTRIBUTOR
    Posted Dec 08, 2019 10:29 AM
      |   view attached
    I've attached two scripts I created after a bit more testing.

    Random observation and caveat - you can create a scheduled payment against a scheduled payment invoice! I can't fathom this being a normal occurrence, so I did NOT allow for it in my scripts.

    The first script shows the Schedule Payment 'Header' information and includes the Customer ID, Customer Name, Original Document Number the schedule is being created for, along with the GL accounts assigned to the schedule. This script has 1 row per schedule.

    The second script expands on the first to include the amortization schedule or all SP documents in the schedule, so there will be multiple rows per schedule.

    Two other side notes about my scripting in general. First I always using LTRIM and RTRIM on character fields to remove leading spaces (yes it happens)  and trailing spaces (padding). Second, I use the FORMAT keyword to make date fields more readable - if you want to be able to sort by these date fields in this script you will need to either remove the format or add the raw date field you want to use for sorting. And if you need the date fields formatted for Europe you can use the same command with 'en-gb' instead of 'en-us' (or just change the date format in Excel).

    Enjoy!
    Jeff

    ------------------------------
    Jeff Pfershy
    Sr Business Analyst
    BluJay Solutions Inc
    Holland MI
    ------------------------------

    Attachment(s)

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  • 12.  RE: special "split" payment terms

    Posted Dec 09, 2019 09:10 AM
    Hi Jeff,

    First of all thank you so much for looking into this. You went above and beyond what I was expecting!! I will look into this today and let you know if I run into any issues.
    Another question I had was regarding the timing of posting the scheduled payments. It looks like most people post the scheduled payments on a monthly basis instead of when they create the scheduled payment. Does it not make more sense to post all of them right away even if they are in future periods so the AR aging reflects the amounts in the correct periods?

    Thanks,

    Karl

    ------------------------------
    Karl Solski
    MIP Inc.
    Anjou QC
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  • 13.  RE: special "split" payment terms

    SILVER CONTRIBUTOR
    Posted Dec 09, 2019 12:00 PM
    @Karl Solski - GP recommends monthly (or each period)​ as the customer can pay extra 'principal' along with one of their payments (imagine that!). GP knows that the SP document is essentially an 'installment' payment invoice, and will ask/prompt the user to apply the extra principal as shown in the image below. If all invoices are posted up front you would just apply the overage the the next SP invoice (103,440 in my sample below).

    If the SP contains interest however there may be an impact in posting all the invoices at once. I didn't go that far with my testing.
    Apply Principal


    ------------------------------
    Jeff Pfershy
    Sr Business Analyst
    BluJay Solutions Inc
    Holland MI
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  • 14.  RE: special "split" payment terms

    TOP CONTRIBUTOR
    Posted Dec 09, 2019 02:31 PM
    Edited by Kim Peterson Dec 09, 2019 02:32 PM
    Have you considered Nolan Business's product called  InterCompany Postings: Simplifies posting of intercompany transactions between multiple companies or related entities. Ideal for non-for-profit and large organizations that want to create intercompany transactions in one single step while simultaneously updating multiple companies or related entities.

    I work with Dylan at Nolan - he could help answer questions - DDecker@nolanbusinesssolutions.com

    ------------------------------
    Kim Peterson
    701-261-7307
    Kim@DynamicsConnections.com
    #KimPetersonGP
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  • 15.  RE: special "split" payment terms

    TOP CONTRIBUTOR
    Posted Dec 09, 2019 02:35 PM
    Edited by Kim Peterson Dec 09, 2019 02:37 PM
      |   view attached
    found a document for you to read - see attached.  you need to ask them for a more current version...

    ------------------------------
    Kim Peterson
    701-261-7307
    Kim@DynamicsConnections.com
    #KimPetersonGP
    ------------------------------

    Attachment(s)

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